Financial Reporting News Letter: AASB Updates and Analysis

This report presents a news letter format summary of key updates and pronouncements from the Australian Accounting Standards Board (AASB). The report covers changes in accounting standards, including those related to insurance contracts, property, plant, and equipment, and tax transparency. It discusses the implications of these changes for financial reporting, including the adoption of IFRS 17 for insurance contracts, amendments to AASB 116, and the AASB's road map for tax transparency. The report also addresses the AASB's input on developing high-quality accounting standards for the public sector and modifications to IFRS standards for not-for-profit entities, including the implementation of differential reporting structures. The content highlights the significance of these updates for both preparers and users of financial statements, emphasizing the importance of understanding the rationale behind specific modifications and ensuring compliance with relevant accounting standards.

Running head: NEWS LETTER
News Letter
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1NEWS LETTER
CHANGES Stated in the accounting standard by AASB From 1st May 2017 to 4th August
2017
AASB Road Map for
Transparency in Tax:(16-5-17)
The overseas investors and the
Australian stakeholders have
laid down to view regular and
equal tax position of
organizations. Such supervision
offers the companies with the
facilities of communicating their
tax information which is
consistent with the altering
international disclosure practice
together with the disclosure
requirements of ASIC regarding
the Non-GAAP. This needs the
disclosure of an ETR depending
upon the corporate tax with the
objective of enabling the
companies to comply with tax
rate.
Such kind of directions assist
in establishing the necessary
disclosure with the purpose of
ascertaining that the interested
parties are able to understand
the variations amid the ETR
under the code and ETR for
bookkeeping in agreement
with the accounting standard.
Contracts associated with
insurance: (18-05-17)
The insurance analyst of
Australia would follow the
advantage from the enhanced
international comparison
which is given with the help
of IFRS 17 contracts which is
issued by the IASB.
According to this contract, the
international insurers are not
permitted use historical cost
during the preparation of
financial reports. With the
help of this contract
opportunities are provided to
create a balance and
unprofitable business under
the solitary portfolio resulting
in early identification of
losses.
ED 280 Property Plant and
Equipment
The ED 280 Property Plant
and Equipment lays down the
proposal of narrowing the
amendments to AASB 116-
Property, Plant and
Equipment.

2NEWS LETTER
According to the Proposal,
the proceeds derived from
the sale of items in carrying
the Property, Plant and
Equipment to the necessary
conditions and locations it is
important to function in the
projected method by the
administration. For instance
the inventory at the time of
testing the machinery will be
considered in the profit and
loss report and it is not
required to be subtracted
from the cost of asset.
Improved infrastructure for
transparency of taxpayers:
(20-07-2017)
According to the
development, the companies
of public sector are under
obligation of realizing the
asset and liabilities with the
partnership of public and
private sector firms.
AASB and International
Public Sector Accounting
Standard Board
Pronouncements: Staff Report
(11-05-2017)
AASB offers the input for the
development of high quality
accounting standards to make
sure that Public Sector financial
reporting improves the
responsibilities and the needs of
users with public interest.
AASB is responding to the
feedback on reviewing the IFRS
adoption that provides guidance
for public sector in preparing
financial statements.
AASB Staff Paper
Modification to AASB for
Non-for-profit firm (11-05-17)
The publication provides the
not-for-profit financial
statements to have
understanding of current
modification to IFRS Standard
for Non-For-Profit entities.
Preparers and auditors of
Not-for-Profit monetary
statements will the opening
of better understanding and
the rationale involved in the
specific modification that
have been made by the IFRS
standards.
Uncertainty concerning
Income Tax Treatment: (23-
07-2017)
AASB 1053 considers the
implementations of the
differential reporting
structure comprising of the
two-tier report. Publicly
responsible for-profit
companies are required to
undertake the Tier-1
requirements and comply
with the requirements of
IFRS. Tier 2 consist of the
identification and
measurement of Tier 1
requirements.

3NEWS LETTER
References
Aasb.gov.au. (2017). News. [online] Available at: http://www.aasb.gov.au/News.aspx
[Accessed 28 Aug. 2017].
Cpaaustraliaadvice.com.au. (2017). Home. [online] Available at:
https://www.cpaaustraliaadvice.com.au/ [Accessed 28 Aug. 2017].