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AASB Framework for tax transparency

   

Added on  2020-03-01

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Running Head: FINANCIAL ACCOUNTINGFinancial AccountingName of the Student:Name of the University:Author’s Note:

2FINANCIAL ACCOUNTINGAnswer to Question 1:ALTERATIONS THAT INDICATE THE ACCOUNTING STANDADTHROUGH AASB FROM 1ST MAY 2017 TO 4TH AUGUST 2017AUSTRALIANAASB FRAMEWORKFORTAXTRANSPARENCY(16-05-17) The stakeholders of Australia along with international investorsconsider viewing reliable and highly compatible tax reportingregarding tax position of companies. This guidance facilitatesthe companies in explainingtax based information, that remains consistentwith increasing internationaldisclosure practices and requirements of ASIC inconsideration to non-GAAP. This requires disclosure of certain ETR relied on corporatetax just to enable comparisonwith tax rateof the company.This guidance maintains the needed disclosures in order to make sure that the associated parties might realise the differences among ETR within code prepared in compliance and certain accounting standards. INSURANCECONTRACTS (18-05-2017)The Australian insuranceanalysts might attain greatadvantagesfromimproved internationalcomparability providedthrough IFRS 17contracts issued inaccordance with IASB.As per these contracts, theinternational insurersmight not be facilitated toemploy historical costwithin annual reports. Inaccordance with suchcontracts, opportunitiesare decreased in order togain profitable andunprofitable business in aparticular portfolio thatleads to recognition oflosses at an early stage. ED 280- PROPERTY,PLANTANDEQUIPMENTThis serves as a proposalin making a lot ofamendments to “AASB116- Property, Plant andEquipment”. Based onproposal,earningsgathered from productssold manufactured whileconsidering “property,plant and equipment” tocondition along withlocation which isnecessary for it to be ableto operate in ways thatmight be totally from partof management. Forexample, the inventory2

3FINANCIAL ACCOUNTINGproduced in the durationof testing, machinerymight be associated withprofit and loss and it willnot be deducted fromasset cost. SUPERIORINFRASTRUCTURETRANSPARENCYFOCUSSED ONTAXPAYERS (20-07-2017)As per such development,the public sectorcompanies might berequired to maintainassets and liabilitiesrelated with public-private partnerships.Additionally,suchprojects must be indicatedwithin the balance sheetstatements of a companythat leads to increase intotal assets and liabilities.This might support inmaintaining superioraccountability along witheffective management. ORGANISATIONSREQUIRESREPORTING ONTAX LIABILITIES(04-07-2017)Based on suchamendment, the directorsare required to assess in abetter manner theaggressiveness relatedwith tax positions bytaking into account thatthe tax authority hasenormous knowledgeregarding certain facts. Inaddition, the tax liabilityin accordance with certainanticipated amount ofsettlement must not bementioned within balancesheet statement of acompany. STRATEGY OFAASB BOARD ANDBUSINESS PLAN(28-07-16)Such amendment wasmaintained in accordancewith the “Auditing andAssurance StandardsBoard”. AASB hasmaintained such strategyover the years from 2017to 2021. Certainimportant people arecapable to explain thisstandard within overallstrategy finalisation. END OF APARTICULAR ERA(29-07-17)This amendment hasindicated the closure ofAASaccountingstandards, for reason that“AASB 1056” consideredoutdated “AAS 25Financial Reporting” bydevelopingsuperannuation planswithin the currentfinancial year. 3

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