Financial Accounting News Letter

Financial Accounting
News Letter

Financial Accounting
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NEWS LETTER
AASB 8: Right-of-Use Assets of Not-for-Profits Entities:
It gives a temporary solution to the assesse for election of
measure class to right-of-use assets under concessionary leases at
initial recognition. The individual has two options regarding the
asset, It can take it as cost that is amount of initial as per “AASB
16 paragraph no 23-25” or it can take it in fair value as “AASB
16 paragraph no 25”. The asses can choose between the two
limits.
AASB 6: Clarification of business definition in AASB 3:
This standard has been added to clarify the definition of business
which is being lay down in AASB 3. The amendments which
came are to clarify it as a business activity it must include
minimum input and a substantive procedure which together gives
some output. Secondly it removes the assessment of the market
participants are able to replace any missing input or process and
still continue to produce output. It even some examples which
help the individual to know about the substantive process. It even
narrows the business definition by keeping it in goods and
service and excluding the ability of reduction cost and lastly it
added an optional concentration which show whether the
business the activities and asset are related to business or not.
AASB 7: Amendment of material definition in
AASB101:
The amendment has been
made related to the
definition of material which
is been laid down in the
AASB 101. In Standard 101
the paragraph no 7 has been
changed and a new
paragraph has been
Summary of news in the environment of financial reporting
Period 1st Dec 2018 to 31st March 2019: