Amendments to Accounting Standards AASB & IFRS

This assignment explores recent amendments to Australian Accounting Standards (AASB) and International Financial Reporting Standards (IFRS). It covers topics like modifications to insurance contracts under AASB 9 and AASB 4, changes in share-based payment treatments, impairment tests according to IAS 136, and the influence of political and legislative factors on financial reporting. The assignment also discusses ASIC's role in reviewing and implementing these standards, emphasizing the importance of understanding their implications for businesses and stakeholders.

Circulated Amendment for
International financial
reporting standard and
AASB
This newsletter shows all the recent
amendment and notification passed by
international financial reporting Board and
other authorities.
Applying AASB 9 Financial
Instruments with AASB
4 Insurance Contracts
 Recent amendment make changes in
insurance contact and applicable rules.
 It is applicable from the following
accounting period from the month in
which new circulation and details have
been passed.
 It provides temporary exemption from
specific requirement of AASB 128
These changes and amendments could also
be noticed by staff members by visiting
the sites of federal register of legislation
https://www.legislation.gov.au/Details/
F2016L01637
The changes in AASB-9 have strengthened
the disclosure requirements in the
application of insurance contract. This will
increase the transparency of the instance
contract and balance sheet details of
company.
Accounting standard AASB
Amendment to Australian accounting
standards- classification and
measurement of share based payment
transactions
 This newly amendment will make
the changes in treatment of vesting
and non-vesting conditions.
 There would be no obligation on
company to make payment of
employee’s tax while allocating
employee stock options to
employees.
Impairment test IAS-136
Amendment to the issued IFRS-136
All the assets would be undergone for
impairment loss.
Goodwill will be used first to overcome all
the losses. Cash generating units will be
further used to reduce the impairment loss
Accounting standard AASB and
IFRS standard

Influences on financial reporting
 Political and legislation influence in different countries and their acceptance.
 Corporate acceptance and
 Application of international rules and accounting standard
 Interpretation by the stakeholders and their investment decisions.
ASIC review and application
 Issues of accounting and reporting standards.
 establishment of harmonization in IFRS and domestic accounting standard
All the amended rules and regulations will be applicable from the following accounting period from the
month in which it is issued.
Key points to follow
 Understand nature and application of new IFRS rules and standard.

 compliance with all the applicable accounting standard and provision.
 impact on the newly amendment provisions and rules and their effective data while reporting
the financial statement with the authority.
Bibliography
· Capkun, V., Collins, D. and Jeanjean, T., 2016. The effect of IAS/IFRS adoption on earnings
management (smoothing): a closer look at competing explanations. Journal of
Accounting and Public Policy, 35(4), pp.352-394.
· Klimczak, K. M., & Krasodomska, J. (2017). The role and current status of IFRS in the
completion of national accounting rules–Evidence from Poland. Accounting in Europe, 1-
6.
Bohusova, H., & Svoboda, P. (2015). Possible Amendment to IFRS for SMEs due to New
Approach to Operating Lease Reporting in Full IFRS: Effect on Financial Analysis
Ratios in Air Cargo Transportation in the Czech Republic.
Quagli, A& Ricciardi, M., (2010) The IAS 39 October 2008 Amendment as another opportunity
of earnings management: an analysis of the European banking industry.
Sucher, P. & Jindrichovska, I., (2004). Implementing IFRS: A case study of the Czech
Republic. Accounting in Europe, 1(1), pp.109-141.
 Fiechter, P., Landsman, W.R., Peasnell, K.V. and Renders, A., 2017. The IFRS Option to
Reclassify Financial Assets out of Fair Value in 2008: The Roles Played by Regulatory
Capital and Too-Important-To-Fail Status.