Newsletter and Financial Accounting - Assignment

Running Head: NEWSLETTER AND FINANCIAL ACCOUNTING
Newsletter and Financial Accounting
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NEWSLETTER AND FINANCIAL ACCOUNTING
2
ANSWER TO QUESTION 1
CHANGES DEPICTING IN THE ACCOUNTING STANDAD BY AASB
DURING 1ST DECEMBER 2017 TO 31ST MARCH 2018
AUSTRALIAN
New Australian
Accountign Standard
(22-12-17)
There are three
amendments that has
been stated by the
Australian Accounting
Standard Board along
with new one principle
standard. The effective
date relating to the
amendments that is
made by AASB 2014-10
is deferred to annual
year commencing from
1s t January 2022
containing numerous
editorial corrections
(Aasb.gov.au, 2018). The
AASB 2017-6 provides
a scope of modifications
to AASB 9 financial
instrument that gives
consent to companies in
measuring the amortised
cost relating to financial
assets. The revision
includes long term
interest in joint ventures
and associates are to be
recorded by using the
AASB 9 financial
instrument before
allocating any loss and
impairment (Aasb.gov.au,
2018).
Making materiality
judgement (22-12-2017)
A statement released by
Australian Accounting
Standard Board required
making materiality
judgements (Sutherland,
2017). The directors,
trustees and other
responsible individuals
were considered
accountable for preparing
and presenting the
financial statement by
making continuous
judgement regarding
materiality (aasb.gov.au,
2018). A practice
statement was released by
AASB that provided
guidance to auditors and
regulators regarding
materiality judgements.
Tax transparancy code
25th january 2018
A voluntary tax
transparency code was
released by the Australian
Accounting Standard
Board which intended to
encourage comparability
and transportability
relating to important
information concerning
organization taxation
(aasb.gov.au, 2018). On the
request of board of
taxation, AASB has
issued in its statement a
draft guidance to assist
companies in assessing
the performance of
recommended tax
reconciliation with
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NEWSLETTER AND FINANCIAL ACCOUNTING
3
effective tax calculation
rate.
Financial reporting
framework for charities
(14-02-2018)
The AASB has released a
research paper that is
based on the current
financial reporting
requirements relating to
charities (aasb.gov.au,
2018). The objective of
releasing the reporting
framework was to provide
charity sector to improve
the financial reporting
requirements.
Annual improvements to
2015-17 cycle (23-02-
2018)
The purpose of releasing
the standard is to revise
the interest which was
previously held in the
joint operation, income
tax consequences of
income payments of
financial instrument
which is classified as
equity together with cost
of borrowing that
qualified for
compensation.
AASb reduced disclosure
requirements (21-12-
2017)
AASB released reduced
disclosure requirements
for the second tier entities
associated with AASB 16
accounting for leases
(aasb.gov.au, 2018). In
contrast to Tier-1, the
disclosure in the tier 2
assisted in lowering the
burden of disclosure with
the cost of preparing and
auditing general purpose
financial statement for
several companies
regardless of whether
they are profit and non-
profit organizations.
Australian
implementation guidance
for NFP public sector
licensors: ED (21-12-17)
The AASB has
developed standards that
is aimed at lower the
diversity that are
associated with
accounting for revenue
derived from license
issued by public sector
entities . The enforcement
direct 283 lay down the
revision to help the
licensors of public sector
in differentiating the
licenses from taxes and
ascertaining the nature of
licenses that are issued.
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