Recent Changes in External Reporting

This article discusses the recent changes in external financial reporting environment, including the issuance of new accounting standards and their applicability. It also highlights the amendments made to clarify the definition of business and 'material'.

Running head: RECENT CHANGES IN EXTERNAL REPORTING
Recent Changes in External Reporting
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1RECENT CHANGES IN EXTERNAL REPORTING
Table of Contents
Answer to question 1:.................................................................................................................2
References and bibliography:.....................................................................................................4

2RECENT CHANGES IN EXTERNAL REPORTING
Answer to question 1:
RECENT CHANGES IN EXTERNAL FINANCIAL
REPORTING ENVIRONMENT
ISSUE OF A NEW ACCOUNTING
STANDARD, AASB 2019-X (Dated:
24.01.2019)
The AASB have recently issued a
proposed standard 2019-X. It makes
significant changes in the conceptual
framework of reporting financial
information (aasb.gov.au, 2019). AASB
seeks comments and suggestions from
public and various users of financial
information to improve the effectiveness
of the standards. It will be made applicable
compulsorily for the privet sector
companies, having public accountability.
For not-for-profit organisations it is
voluntary they can adopt it voluntarily
(aasb.gov.au, 2019). It will retain the
existing Conceptual Framework for
preparation and presentation of financial
statement and the concept of reporting
entity. It will be applicable for 01.01.2019.
PRACTICE STATEMENT 2 AND IT’S
APPLICABILITY (Dated: 13.12.2018)
AASB have issued a new AASB
practice statement 2, for accounts
professionals. It requires additional
disclosures of information for risks related
to climate changes. It gives guideline for
professionals, directors, accountants who
are preparing financial statement and for
auditors who are certifying the financial
statement of a company. (aasb.gov.au,
2019).
NEW AUSTRALIAN ACCOUNTING
STANDARDS AND ITS
APPLICABILTY (Dated: 20.12.2018)
AASB have amended and issued
two accounting standards, which clarifies

3RECENT CHANGES IN EXTERNAL REPORTING
the definition of business and ‘material’.
The newly issued amended AASB 2018-6
clarifies the definition of business to
identify a transaction, which needs to be
recorded as a business combination or as
an assets acquisition. Secondly, the new
amended AASB 2018-7 gives clarification
of the term ‘material’. It has brought
certain amendments in AASB 101;
Preparation of financial statements.
RIGHT-OF-USE ASSETS OF NOT-
FOR-PROFIT ENTITIES (Dated:
24.12.2018)
The AASB have issued one more
newly amended accounting standard
AASB 2018-8. It gives clarification and
guidance for recognition of right to use of
assts into lease or a right to use for not for
profit entities. It gives clarifications
methods for valuation of those leases or
right to use of assets. It makes two key
changes in the reporting measures, one is
provisional applicability option to apply
the ROU assets on class-by-class basis and
the other is for the Government and
general Government segment financial
reporting to measure the ROU assets at
costs price.
COMPULSORY COMPLIANCES
FOR CURRENT REPORTING
PERIOD (Dated: 30.01.2019)
AASB have made it compulsory
for companies to meet the terms with the
following three accounting standards from
the reporting period starting from
01.01.2019. AASB 1: First time adoption
of Australian Accounting Standards,
AASB 15: Revenue from contract with
customers and the AASB 1059: Service
concession arrangements.
PUBLIC SECTOR: COLLECTIVE
AND INDIVIDUAL SERVICES AND
EMERGENCY RELIEF (Dated:
12.02.2019)
AASB have issued an Exposure
Draft (ED) 67on collectives and individual
services and emergency relief applicable
for public sector entities having provisions
for emergency reliefs. It proposes to apply

4RECENT CHANGES IN EXTERNAL REPORTING
the IPSAS 19 for recognising provisions. AASB is still seeking comments on it from
the public till 31st May, 2019
References and bibliography:
Aasb.gov.au. (2019). Onerous Contracts – Cost of Fulfilling a Contract. Retrieved 7 April
2019, from https://www.aasb.gov.au/admin/file/content105/c9/ACCED287_01-19.pdf
Aasb.gov.au.(2019). Presentation of Financial Statements. Retrieved 9 April 2019, from
https://www.aasb.gov.au/admin/file/content105/c9/AASB101_07-15.pdf
News . (2019). Aasb.gov.au. Retrieved 9 April 2019, from
https://www.aasb.gov.au/News/Fatal-flaw-review-draft---Proposed-Standard-AASB-
2019-X-Amendments-to-Australian-Accounting-Standards---References-to-the-
Conceptual-Framework?newsID=310721
News . (2019). Aasb.gov.au. Retrieved 9 April 2019, from
https://www.aasb.gov.au/News/New-Accounting-Standard--Right-of-Use-Assets-of-
Not-for-Profit-Entities?newsID=310718
News . (2019). Aasb.gov.au. Retrieved 9 April 2019, from
https://www.aasb.gov.au/News/New-Australian-Accounting-Standards?
newsID=310717