Case study on Financial report -2

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

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FINANCIAL ACCOUNTING
NEWS LETTER

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FINANCIAL ACCOUNTING
NEW SIMPLIFIED DISCLOSURE
STANDARD FOR FOR-PROFIT AND
NOT-FOR PROFIT TIER 2 ENTITIES (19
MARCH, 2020)
The AASB has developed the AASB 1060
General Purpose Financial Statements –
Simplified Disclosures for For-Profit and Not-
for-Profit Tier 2 Entities in combination with
AASB 2020-2 Amendments to Australian
Accounting Standards – Removal of Special
Purpose Financial Statements for Certain For-
Profit Private Sector Entities; and there is two
specific objectives of AASB behind this. First,
to provide the Tier 2 reporting requirements
for the for-profit firms that will be restricted to
prepare special purpose financial statements
when AASB 2020-2 becomes operational; and
second, to minimize the burden of reporting
for both the for-profit and not-for-profit
companies through the use of existing Tier 2
reporting requirements (aasb.gov.au, 2020).
SPECIAL PURPOSE FINANCIAL
STATEMENTS REMOVAL FOR
CERTAIN TYPES OF FOR-PROFIT
FIRMS IN PRIVATE SECTOR (18 March,
2020)
AASB has put the restriction of not preparing
the special purpose financial statements under
the AASB standards for certain types of for-
profit private firms staring on or after 1 July
2021. In line with the issue of AASB 2020-2,
the types of for-profit private entities on which
the above-mentioned restriction will be
imposed include firms preparing financial
statements under Part 2M.3 of the
Corporations Act 2001 that include large
proprietary, unlisted public and small
companies controlled by foreign entities; co-
operatives, mutual and other entities that are
required to prepare the financial statements by
complying with either Australian Accounting
Standards or accounting standards; trusts,
partnerships and joint arrangements; and other
for-profit entities (aasb.gov.au, 2020).
AMENDMENTS TO AASB 101 (12 March,
2020)
The main aim of this amendment carried out
by AASB 2020-1 is to provide assistance to
the companies in ascertaining whether debt
and other liabilities having an uncertain date of
settlement need to be classified as current or
non-current assets. Requirement for
classification for debts that need to be settle by
a company is included in this (aasb.gov.au,
2020).
AASB’S PROPOSAL FOR IMPROVING
THE FINANCIAL STATEMENTS AND
THE USE OF NON-GAAP MEASURES
(23 January, 2020)
Non-GAAP measures are frequently
highlighted in media releases and investors
presentation within the annual reports. The
main intentions of ED 298 General
Presentation and Disclosure are to reduce the
need for management performance measures,
to provide improved credibility of financial
statements and others (aasb.gov.au, 2020).