Changes and Developments in Financial Reporting

FINANCIAL ACCOUTNING
Financial Accounting
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1FINANCIAL ACCOUNTING
Table of Contents
Answer to question 1:......................................................................................................................1
Answer to question 2:......................................................................................................................3
Corrections Required:..................................................................................................................5
Discussions in support of above corrections based on AASB 101:.............................................6
Bibliography:...................................................................................................................................7

2FINANCIAL ACCOUNTING
Answer to question 1:
AMENDMENTS IN THE AUSTRALIAN
ACCOUNTING STANDARDS, AASB
2019-X (Dated: 24.01.2019)
The proposed standards of AASB
2019-X brings significant changes in the
conceptual framework of financial reporting
(aasb.gov.au, 2019) and they have asked for
comments from various information users
on that proposed standards to improve its
efficiency and effectiveness. The new
accounting standard will be applicable for
the privet sector companies having public
accountability and it is voluntary for the not
for profit organisations (aasb.gov.au, 2019).
AASB PRACTICE STATEMENT 2
(Dated: 13.12.2018)
AASB have issued a bulletin on the
AASB practice statement 2. It requires
additional disclosure of information for the
Companies who have been affected by any
issues of the climate change. It issues a
guideline for the directors, accountants,
auditors and the financial statement
certifying authorities to disclose any climate
change related risks in the financial
statement (aasb.gov.au, 2019).
INTRODUCTION OF NEW
AUSTRALIAN ACCOUNTING
STANDARDS (Dated: 20.12.2018)
AASB have introduced two amended
accounting standards and clarified the
definition of business and ‘material’. The
newly amended AASB 2018-6 gives
clarification of business to specify whether a
transaction should be recorded as
combination of business of acquisition of
assets. The newly amended AASB 2018-7
CHANGES AND DEVELOPMENTS IN FINANCIAL REPORTING
FROM 1ST DECEMBER 2018 TO 31ST MARCH 2019

3FINANCIAL ACCOUNTING
clarifies the definition of ‘material’ and
specifies its applications. It brings
amendments in AASB 101 Preparation of
financial statement.
NEW ACCOUNTING STANDARD ON
“RIGHT-OF-USE ASSETS OF NOT-
FOR-PROFIT ENTITIES”. (Dated:
24.12.2018)
The newly issued amended
accounting standard AASB 2018-8, gives
clarification and guidance recognition of
right to use of assts into lease or a right to
use. It also clarifies on the valuation aspect
of those leases or right to use. It brings two
key changes, temporary option to apply the
ROU assets on class by class basis and
government and general government sector
financial reporting to measure the ROU
assets at costs.
NEW COMPLIANCE FOR
REPORTING PERIOD (Dated:
30.01.2019)
AASB have made mandatory to
comply with the three accounting standards.
AASB 1 First time adoption of Australian
Accounting Standards. AASB 15 Revenue
from contract with customers and the AASB
1059 Service concession arrangements,
these three new accounting standards have
been made applicable for the reporting
period starting from 01.01.2019.
COLLECTIVE AND INDIVIDUAL
SERVICES AND EMERGENCY
RELIEF FOR PUBLIC SECTOR (Dated:
12.02.2019)
AASB have issued an Exposure
Draft (ED) 67 collective and individual
services and emergency relief, which aims at
accounting for collective and individual
services and also the emergency reliefs. It
proposes an amendments to the IPSAS 19. It
clarifies the definition of collective services
and emergency reliefs. The IPASB have