The Regulatory Environment and Financial Reporting Report 2022

Running head: THE REGULATORY ENVIRONMENT AND FINANCIAL REPORTING
The Regulatory Environment and Financial Reporting
Name of the Student
Name of the University
Author’s Note

1THE REGULATORY ENVIRONMENT AND FINANCIAL REPORTING
NEWSLETTER
National News for the Period from 1 December 2019 to 31 March 2020
AMENDMENTS TO
AASB 15 AND AASB 1058
– RESEARCH GRANTS
AND NOT-FOR-PROFIT
ENTITIES (18 December,
2019)
AASB has made the non-
for-profit entities with
December year-end able that
receive research grants able
in applying for the Revenue
and Income Standards that
is AASB 15 and AASB
1058 to research grants for
annual reporting periods
beginning on or after 1 July,
2019 rather than 1 January,
2019. This provides the
companies with an
extension in implementation
period for research grants
only.
AUSTRALIAN
ACCOUNTING
STANDARDS
AMENDMENTS – GPS
MEASURES
DISCLOSURE OF KEY
FISCAL AGGREGATES
AND GAAP/GFS
RECONCILIATIONS (19
December, 2019)
AASB has brought recent
changes to the disclosure
requirements for GFS
measures of key fiscal
aggregates and related
GAAP/GFS reconciliation
for the governments that
involve in preparing whole
of government general
purpose financial statements
and General Government
Sector (GGS) financial
statements. The aim is the
clarification of major fiscal
aggregates and explanation
of material differences
between GAAP and GFS
measures.
CHANGES IN NOT-FO-
PROFIT LESSES’
RIGHT-OF-USE ASSETS
ARISING FROM
CONCSSIONARY
LEASES (19 December,
2019)
AASB brought changes in
AASB 16 Leases and AASB
1049 Whole Government
and General Government
Sector Financial Reporting
regarding the right-of-use
assets arising under
concessionary leases for the
lessees of not-for-profit
entities. The two main aim
behind this move is
specifying right-of-use
assets arising under
concessionary leases as a
separate class of ROU asset
and extending the initial-
measurement temporary
relief.
CONSULTATION OF
AASB AND IASB TO
ASSIST INVESTORS
HOLD COMPANIES TO
ACCOUNT FOR
ACQUISITION AND
GOODWILL
ACCOUNTING (26
March, 2020)
The main objective of this
project of AASB and IASB
is to bring improvement in
the information provided to
the investors about the
acquisition and goodwill

2THE REGULATORY ENVIRONMENT AND FINANCIAL REPORTING
accounting. This ensures
better disclosure about
acquisition and effective
accounting for goodwill.
International News for the Period from 1 December 2019 to 31 March 2020
REVIEW OF
ACCOUNTING FOR
GOODWILL BY IASB
(20 March, 2020)
On 19 March 2020,
Discussion Paper DP/2020/1
on Business Combination –
Disclosures, Goodwill and
Impairment was published
by the IASB for public
comment that can be
submitted to the IASB until
15 September 2020.
Retaining the impairment-
only approach for
accounting of goodwill is
the main intention of the
IASB. Since there is
limitation in this method,
comments are being invited
from the stakeholders for
explaining their view on
this.
FRC’S ADVICE TO
CORONAVIRUS RISK
DISCLOSURE BY
COMPANIES (18
February, 2020)
A guidance for companies
have been published by the
FRC on disclosing risks and
other reporting
consequences from the
emergence and outbreak of
Coronavirus (COVID- 19).
As the companies have the
lawful obligation to disclose
the principle business risks,
FRC advices them to
carefully consider their trade
association with China. This
can lead to additional
disclosures that these
companies may need to
include.
PROPOSAL OF THE
IASB TO BRING
CHANGE IN PROFIT OR
LOSS STATEMENT (13
March, 2020)
The IASB is proposing to
bring major changes in the
IFRS standards as a
response to the demand of
the investors for improving
performance reporting that
mainly affects the profit or
loss statement. This
proposal will create impact
on all entities involve in the
application of accounting
standards along with a wide
range of stakeholders. This
proposal is enclosed in its
Exposure Draft ED/2019/7
Presentation of Financial
Statements and Disclosures
as a portion of its Primary
Financial Statements
project.
DISCUSSION OF IASB
AND FASB ABOUT
ACCOUNTING FOR
GOODWILL
FOLLOWING A
BUSINESS
COMBINATION (2
March, 2020)
Both IASB and FASB is in
deep discussion for goodwill
accounting in business
combination by considering
bring the amortization
model back.

3THE REGULATORY ENVIRONMENT AND FINANCIAL REPORTING
References
Financial Reporting Council . (2020). Frc.org.uk. Retrieved 12 April 2020, from
https://www.frc.org.uk/news/march-2020-(1)/iasb-reviews-accounting-for-goodwill
Financial Reporting Council . (2020). Frc.org.uk. Retrieved 12 April 2020, from
https://www.frc.org.uk/news/february-2020-(1)/frc-advice-to-companies-and-auditors-on-
coronaviru
The changing face of the profit or loss statement. (2020). CAANZ. Retrieved 12 April 2020, from
https://www.charteredaccountantsanz.com/news-and-analysis/news/the-changing-face-of-the-
profit-or-loss-statement
Goodwill – are we moving back to an amortisation model?. (2020). CAANZ. Retrieved 12 April 2020,
from https://www.charteredaccountantsanz.com/news-and-analysis/news/goodwill-are-we-
moving-back-to-an-amortisation-model
Loftus, J., Leo, K., Daniliuc, S., Boys, N., Luke, B., Ang, H., & Byrnes, K. (2020). Financial
Reporting. (3rd edition). Brisbane: John Wiley & Sons Ltd.
CAANZ Financial Reporting Handbook (2020). Brisbane: John Wiley & Sons Ltd. [2019 Handbook
is allowed into exam hall but not earlier] is need to be mentioned
News . (2020). Aasb.gov.au. Retrieved 12 April 2020, from
https://www.aasb.gov.au/News/Amendments-to-AASB-15-and-AASB-1058---Research-
Grants-and-Not-for-Profit-Entities?newsID=357733
News . (2020). Aasb.gov.au. Retrieved 12 April 2020, from
https://www.aasb.gov.au/News/Amendments-to-Australian-Accounting-Standards---
Disclosure-of-GFS-Measures-of-Key-Fiscal-Aggregates-and-GAAP-GFS-Reconciliations?
newsID=357734
News . (2020). Aasb.gov.au. Retrieved 12 April 2020, from
https://www.aasb.gov.au/News/Amendments-to-not-for-profit-lessees--right-of-use-assets-
arising-under-concessionary-leases?newsID=357735
News . (2020). Aasb.gov.au. Retrieved 12 April 2020, from https://www.aasb.gov.au/News/AASB-
and-IASB-consult-on-ways-to-help-investors-hold-companies-to-account-for-acquisitions-
and-on-goodwill-accounting?newsID=357746