Changes in Accounting Standard by AASB from 1 December 2018 to 31 March 2019

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................4
References::................................................................................................................................7

2FINANCIAL ACCOUNTING
ANSWER TO QUESTION 1:
CHANGES IN ACCOUNTING STANDARD BY AASB FROM 1 DECEMBER
2018 TO 31 MARCH 2019
AUSTRALIAN
Modifications in
AASB 20190x to
Accounting Standards
in Australia (24th
January 2019):
AASB has proposed this
new standard for making
considerable changes in
order to publish
conceptual framework
(Aasb.gov.au, 2019).
Besides, according to
AASB, the users of the
financial reports could
comment on any
shortcomings related to
the standard within 22nd
March 2019. The
standard would be
applicable to the private
sector firms and other
firms voluntarily electing
to apply the conceptual
framework.
Costs to be incurred for
meeting a contract
obligation- Onerous
contract (8th January
2019):
The objective of onerous
contracts is the
modification of AASB
137 for representing the
fact that meeting cost
takes into account
incremental costs
(Aasb.gov.au, 2019).
These costs mainly
constitute of material
costs and other expenses,
which are associated
directly with contracts
like depreciation incurred
on plant and machinery to
be used for the contract.
Right-of-Use Assets
of Not-for-Profit
Lessees (20th
December 2018):
AASB has planned to
amend a particular
standard in order to
provide a provisional
replacement for not-for-
profit lessees in order to
gauge the right-of-use
assets in accordance with
concessionary leases at
cost price rather than fair
value (Aasb.gov.au,
2019). The estimated
publication date of the
standard has been 24th
December 2018. In
addition, concessionary
leases could be defined as
those leases, which have
low market terms and
conditions for allowing
the organisations in
progressing with their
objectives. This draft
standard is reliant on
“AASB Exposure Draft
ED 286 Amendments to
Australian Accounting
Standards- Right-of-use
Assets of Not-For Profit
Entities”. By assuring
additional disclosure in
AASB 16, this standard