Financial Accounting Newsletter: Financial Reporting Developments

This financial accounting newsletter, prepared for an accounting firm's staff, summarizes significant developments in the financial reporting environment from April 1, 2019, to July 31, 2019. It covers updates on the Conceptual Framework for Financial Reporting, including changes to the definition of liability and the adoption of the new framework by for-profit entities. The newsletter also addresses decisions regarding illustrative examples and clarification on fair value measurement, particularly for public sector entities. Furthermore, it details planned amendments to IFRS standards in response to IBOR reform, updates on IFRS 17, and discussions on credit-impaired financial assets. The newsletter also highlights the launch of the IFRS Foundation's new quarterly podcast. Each update provides a brief overview and links to further information, ensuring staff are informed of relevant changes and their potential impact on financial reporting practices.

Running head: FINANCIAL ACCOUNTING
Financial Accounting
Name of the Student
Name of the University
Author’s Note

1FINANCIAL ACCOUNTING
NEWSLETTER
Exposure Draft on
Reference to the
Conceptual Framework
(Date: 06.06.2019)
With the aim to update the
Conceptual Framework for
Financial Reporting while
not changing the accounting
requirements of business
combination, ED 290
References to the
Conceptual Framework has
proposed the narrow-scope
changes in AASB 3
Business Combination. This
would lead to the
broadening of the definition
of liability in the new
Conceptual Framework.
Decision on the Inclusion
of Illustrative Examples
and Certification on Fair
Value Measurement
(Date: 10.05.2019)
On 30th April, the AASB has
taken the decision to
provide assistance to the
public sector entities in the
application of certain
principles in AASB 13 Fair
Value Measurement by
enabling the inclusion of
illustrative examples. In
addition, it is proposed to
include the utilization of
cost approach in AAB 13 in
order to determine the
asset’s fair value for the not-
for-profit entities through
certain amendments in
AASB 13.
Conceptual Framework
for Financial Repowering
(Date: 06.06.2019)
There has been the issue of
a new Conceptual
Framework for Financial
Reporting for the private
sector for-profit entities that
have public accountability
to comply with the
Australian Accounting
Standards. AASB has
provided the option to other
for-profit entities to adopt
this new Conceptual
Framework for Financial
Reporting on or after
01.01.2020.
Definition and Guidance
related to Not-for-Profit
Entities (Date: 11.06.2019)
ED 219 Not-for-Profit
Entity Definition and Guide
has proposed to replace the
current definition of not-for-
profit entity with a more
applicable definition. To
provide the communities
with goods and services for
their benefit and to consider
this objective beyond
financial return and
provision of equity are
considered as two crucial
parts of this definition.
AASB 1057 Application of
Australian Accounting
Standards will have this new
definition with the removal
of the old one.

2FINANCIAL ACCOUNTING
Planned Directed
Alterations in IFRS
Standards in the Response
of IBOR Reform (Date:
03.05.2019)
The old and new standards
for financial instruments
that are IAS 39 and IFRS 9
will have certain changes
and the IASB seeks public
comment on this; and this
has been undertaken to
reform the interest rate
benchmarks like IBORs.
This involves the
amendments of IFRS 9
Financial Instruments and
IAS 39 Financial
Instruments: Recognition
and Measurement.
Amendments to IFRS 17
Overview (Date:
04.06.2019)
The IFRS has recorded and
presented a new webinar
related to the overview of
the Exposure Draft
Amendments to IFRS 17;
and this has been approved
by the IASB. The
responsible members for
this presentation are Laura
Kennedy and Roberta
Ravelli.

3FINANCIAL ACCOUNTING
Webinar related to IFRS 9
regarding Credit-
Impaired Financial Assets
(Date: 22.07.2019)
On March 2019, the process
to present the amounts in
the profit and loss statement
of a company due to the full
payment of credit-impaired
financial assets and assets
with no credit-impaired has
been taken into account by
the IFRS Interpretation
Committee. As the
committee concludes, the
entities can obtain sufficient
base from the IFRS in order
to address this issue. The
members responsible for
this are Angie Ah Kun and
Elizabeth Figgie who are
technical staffs of IFRS
Interpretation Committee.
IFRS Foundation’s New
Quarterly Podcast Launch
(Date: 05.07.2019)
The IFRS Foundation has
launched the new quarterly
podcast that puts emphasis
on the works of the
International Accounting
Standards Board (IASB) and
the IFRS Interpretation
Committee with the aim to
provide their full support in
the appropriate application
of the principles of IFRS.
The crucial aspects
undertaken in this podcast
are new financial instrument
application, revenue
recognition, lease standards
and accounting for
cryptocurrencies.

4FINANCIAL ACCOUNTING
References
IFRS. (2019). Ifrs.org. Retrieved 3 August 2019, from https://www.ifrs.org/news-and-
events/2019/07/new-webinar-available-overview-of-exposure-draft-amendments-to-
ifrs-17/
News. (2019). Aasb.gov.au. Retrieved 13 August 2019, from
https://www.aasb.gov.au/News/Not-for-Profit-Entity-Definition-and-Guidance-(June-
2019)?newsID=327180
News. (2019). Aasb.gov.au. Retrieved 13 August 2019, from
https://www.aasb.gov.au/News/Conceptual-Framework-for-Financial-Reporting?
newsID=327179
News. (2019). Aasb.gov.au. Retrieved 13 August 2019, from
https://www.aasb.gov.au/News/Decision-to-propose-illustrative-examples-and-
clarification-on-fair-value-measurement-for-public-sector-entities?newsID=327174
News. (2019). Aasb.gov.au. Retrieved 13 August 2019, from
https://www.aasb.gov.au/News/Exposure-Draft--Reference-to-the-Conceptual-
Framework?newsID=327178
IFRS. (2019). Ifrs.org. Retrieved 13 August 2019, from https://www.ifrs.org/news-and-
events/2019/07/ifrs-9-webinar-curing-of-a-credit-impaired-financial-asset/
IFRS. (2019). Ifrs.org. Retrieved 13 August 2019, from https://www.ifrs.org/news-and-
events/2019/07/ifrs-foundation-launches-new-quarterly-podcast/
IFRS. (2019). Ifrs.org. Retrieved 13 August 2019, from https://www.ifrs.org/news-and-
events/2019/05/iasb-proposes-targeted-amendments-to-ifrs-standards-in-response-to-
ibor-reform/