Financial Accounting News Letter

This news letter provides a summary of the latest updates and amendments in the field of financial accounting. It covers topics such as right-of-use assets, clarification of business definition, material definition, service concession arrangements, and revenue from contracts with customers. The news letter aims to keep readers informed about the changes in financial reporting standards and their implications.

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:

added as 139T. The amendment states that information will only
be treated as material if it could reasonably and it can directly
impact upon the primary decision makers of the financial
statements. It depend upon the magnitude and the nature of the
information, it’s the individual who will see whether the
information is material to the financial statement or not.
AASB 1059 and IPSASs Service Concession Arrangements:
The AASB 1059 is applicable to the public sector entities for the
profit making company and non-profit making companies.
Whereas the IPSAS 32 is applicable to the non-profit public
sectors. The standard requires the grantor to at first measure the
service concession assets that are provided by the operators at the
present replacement costs in respect of the cost approach based
on the AASB 13 fair value measurement.
First time Adoption of Australian Accounting Standard
AASB 1:
This standard has been introduced taking IFRS 1, the objective of
introducing this standard is that the company have to maintain
high quality information in the financial statement
(Aasb.gov.au, 2019). It is being brought so that the financial
statement are transparent to the financial user and it help them to
get the details information related to the financial statement.
AASB 15: Revenue from Contracts with Customers:
This standard has been introduced with the help of IFRS 15, this
standard is being introduced so that the individual shall give
useful information about the nature, timing, amount and
uncertainty of amount and cash flow related to the contract with
customers to the user of financial statement.
AASB 1059: Service Concession Arrangements:
This standard is based upon International Public Sector Accounting
Standard 32, this standard state the accounting perspective of a
grantor which is public entity. It involves the arrangement which
involves an operator providing public services related to concession
IPSAS 19 Provision
Contigent Liabilities and
Contigent Assets – It include
that no provisions is
reconginsed regarding the
intensions to deliver
collective and individual
items. The activities or
obligation which arises
providing collective and
individual items will not be
sepreated with the entity
future actions and even it
does not rise the present
obligations prior to the
delivery of the services
(Aasb.gov.au, 2019). It also
apply the provision should be
recongnised or it should be
give a disclosure as contigent
liability for the delivery of
emergency relief. It also
define the collective services
as a services which is
provided by the public entity
which is to all the members
of the community which are
intended to address the need
of society as whole.

asset on behalf of public sector which is being specified for a period of time and it even manage some
of those services. It involves an operator which is been constructed to provide services to the public. It
helps to know about the activities related to the public services.

References
Aasb.gov.au (2019). News. [online] Aasb.gov.au. Available at:
https://aasb.gov.au/News/Public-Sector--Collective-and-Individual-Services-and-Emergency-
Relief?newsID=310725 [Accessed 26 Mar. 2019].
Aasb.gov.au (2019). News. [online] Aasb.gov.au. Available at: https://aasb.gov.au/News.aspx
[Accessed 26 Mar. 2019].