Financial Accounting: Regulatory Environment and Financial Reporting, Financial Statement Presentation

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student
Name of the University
Author’s Note

FINANCIAL ACCOUNTING1
Table of Contents
Answer to Question 1: The Regulatory Environment and Financial Reporting........................2
Answer to Question 2: Financial Statement Presentation..........................................................4
Requirement (i)......................................................................................................................4
Requirement (ii).....................................................................................................................5
Requirement (iii)....................................................................................................................7
References................................................................................................................................10

FINANCIAL ACCOUNTING2
Answer to Question 1: The Regulatory Environment and Financial Reporting
NEWSLETTER
DEFINITION AND GUIDANCE OF NOT-
FOR-PROFIT ENTITY (11 JUNE, 2019)
The present definition of a not-for-profit entity
is to be replaced with a substantive definition
by ED 219 Not-for-Profit Entity Definition and
Guide and this is states in a proposal. There
are two independent parts in this proposed
definition; 1) providing goods and services to
the community for social benefits is the
primary objective, and 2) supporting the
objective instead of a financial return is the
provision of any equity. It is proposed that the
new definition will be added to AASB 1057
Application of Australian Accounting
Standards where the old definition will be
removed (aasb.gov.au, 2019).
CONCEPTUAL FRAMEWORK FOR
FINANCIAL REPORTING (6 JUNE, 2019)
The AASB has issued a new Conceptual
Framework for Financial Reporting for the for-
profit entities in private sector having public
accountability and have legislative obligation
to adhere to the Australian Accounting
Standards. Moreover, other for-profit
companies have the option to willingly adopt
this new Conceptual Framework which applies
to the period of annual reporting on or after 1
January 2020. This new Conceptual
Framework integrates IASB’s meaning of
‘reporting entity’ while revising the definition
and recognition criteria of assets and liabilities
(aasb.gov.au, 2019).
DECISION OF PROPOSING
ILLUSTRATIVE EXAMPLES AND
CLARIFICATIONS ON FAIR VALUE
MEASUREMENT (10 MAY, 2019)
On 30 April, the Board of AASB has decided
for proposing illustrative examples for
assisting public sector entities in applying
certain principles in AASB 13 Fair Value
Measurement. An amendment to AASB 13 has
also been decided to propose which will
include the use of cost approach in AASB 13
for the determination of fair value of the assets
of the not-for-profit entities operating in the
public sector (aasb.gov.au, 2019).
EXPOSURE DRAFT: REFERENCE TO
THE CONCEPTUAL FRAMEWORK (6
JUNE, 2019)
Narrow-scope amendments to AASB 3
Business Combination for updating for
updating the reference to the Conceptual
Framework for Financial Reporting without
altering the business combination related
accounting requirements has been proposed by
ED 290 Reference to the Conceptual
Framework. This could change the accounting
requirement for business combination because

FINANCIAL ACCOUNTING3
of the broader definition of liability in the new Conceptual Framework (aasb.gov.au, 2019).
IFRS 9 WEBINAR: CURING OF A
CREDIT-IMPAIRED FINANCIAL
ASSETS (22 JULY, 2019)
In March 2019, the IFRS implementation
committee considered the process of
presenting the amounts in the statement of
profit and loss by a company in case there is a
full payment of credit-impaired financial asset
or the asset is no longer credit impaired. It was
concluded by the committee that the
companies can get the sufficient basis for
addressing this issue from the IFRS standards.
Angie Ah Kun and Elizabeth Figgie, two
technical staffs of the IFRS implementation
committee discussed the conclusion they
reached (ifrs.org, 2019).
LAUNCHING OF NEW QUATERLY
PODCAST BY IFRS FOUNDATION (5
JULY, 2019)
The new quarterly podcast emphasizing on the
works undertaken by the International
Accounting Standard Board (Board) and the
IFRS Interpretations Committee in order to
support the reliable application of IFRS
standards has been published by the IFRS
foundation. The important topics covered by
this podcast are the questions regarding the
application of new financial instruments, lease
standards, revenue recognition – IFRS 9, IFRS
16 and IFRS 15 along with the accounting of
cryptocurrencies (ifrs.org, 2019).
PROPOSED TARGETED AMENDMENTS
TO IFRS STANDARDS IN RESPONSE
TO IBOR REFORM BY IASB (3 MAY,
2019)
Four public comment proposed changes to the
old and new standards for financial
instruments, IAS 39 and IFRS 9 have been
published by the International Accounting
Standards Board (Board) in order to
reformation of the interest rate benchmarks
like interbank offer rates (IBORs). The Board
has planned for amending IFRS 9 Financial
Instruments and IAS 39 Financial
Instruments: Recognition and Measurement in
order to provide relief from specific
requirements of hedge accounting (ifrs.org,
2019).
NEW WEBINAR: EXPOSURE DRAFT
AMENDEMTS TO IFRS 17 OVERVIEW
IFRS has made a new recorded webinar
available that provides an overview of the
Exposure Draft Amendments to IFRS 17 and
this is published by the International
Accounting Standards Board on 26 June 2019.
Laura Kennedy and Roberta Ravelli, the