Accounting Newsletter: Developments in Financial Reporting (2018-2019)

This report is a newsletter designed for accounting staff, addressing key changes and developments in the Australian financial reporting landscape from December 2018 to March 2019. It covers amendments to Australian Accounting Standards (AASB), updates to ASX listing rules, IASB updates including IFRS 17 insurance contracts, and the introduction of new accounting standards such as AASB 15, AASB 9, and AASB 16. The newsletter also summarizes ASIC reviews on financial reporting. The document aims to keep financial reporting staff informed about the evolving regulatory environment and its impact on their work, providing links for further detailed information. The newsletter emphasizes the importance of understanding these changes to ensure comprehensive financial reports for firms, specifically highlighting the three new accounting standards applicable for the financial years.

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NEWSLETTER
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THE DEVELOPING LANDSCAPE OF ACCOUNTING FOR CURRENT
FINANCIAL YEARS
Address Contact Date-
Introduction
Financial reports have a purpose of assessing the success and failures of firms, and
also provide quantitative insights into areas where a firm should improve in. as far as the
Australian landscape in accounting is concerned, there have been certain amendments, which
are potent in impacting the calculations and work of a financial reporter of a firm. This
newsletter is aimed at providing a financial report staff about the changes and developments
that have been occurring in the boards, and the IFRS alike, to help them identify the key
developments which they need to consider in their calculations. This report provides a precise
overview of the issues, with references to the links for a detailed explanation.
Amendments to Australian Accounting Standards
Dated- 18/12/2018
 Primarily, this standard amends AASB 101 and AASB 108. These amendments in the
standard modify the AASB 101 material definition.
 These amendments elucidate the material definition and the subsequent use through
refining the phrasing and line up the material definition throughout the AASB
Standards and further periodicals.
 It also comprises supporting requirements in AASB 101 in the material definition to
provide it with additional distinction and illuminates the elucidation complementary
to the material definition.
For more information, visit https://www.aasb.gov.au/Pronouncements/Current-standards.aspx
Amendment to ASX listing rule
Dated- 01/01/2019
The recent amendment in the ASX listing rule pertains to the Guidance Note 15A.
 During the escrow period, there will be no quotation of restriction securities.
 Forfeited shares will not be quoted from the time of their forfeiture.

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 ASX may quote securities based on any form of conditions, which it feels is
appropriate.
For more information, visit https://www.asx.com.au/regulation/rules/recent-rule-
amendments.htm
IASB update, January, 2019
IFRS 17 insurance contracts have been amended, covering the topics that follow:
 insurance acquisition cash flows—Agenda Paper 2A;
 reinsurance contracts held—Agenda Papers 2B, 2C and 2D; and
 recognition of the contractual service margin in profit or loss—Agenda Paper 2E.
These amendments will be further assessed by the board to evaluate whether the costs of
these amendments outweigh the benefits.
For more information, visit
https://www.ifrs.org/news-and-events/updates/iasb-updates/january-2019/
The three new issues of accounting standards
 AASB 15 Revenue from Contracts with Customers
 AASB 9 Financial Instruments
 AASB 16 Leases
It is important to note that while the AASB 15 and AASB 9 are applying for the first time
to financial years of December 2018, AASB 16 is applying to financial years of December
2019.
For more information, visit https://www.bdo.com.au/en-au/accounting-news/accounting-
news-october-2017/three-new-accounting-standards
ASIC reviews on financial reporting
 31 December 2016 financial reports review
 2015-16 audits inspection
 Communicating findings from audit files
For more information, visit https://asic.gov.au/regulatory-resources/financial-reporting-and-
audit/preparers-of-financial-reports/

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Summary
It has to be noted that there are a major developments taking place in the Australian
accounting landscape, which have to be considered in the near future by financial reporting
staffs. There are three new issues of accounting standards which have to be well grasped by
the staffs, for the purpose of elucidating comprehensive financial reports for the respective
firms.

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Bibliography
Accounting standards. (2019). Retrieved from
https://www.aasb.gov.au/Pronouncements/Current-standards.aspx
IFRS. (2019). Retrieved from
https://www.ifrs.org/news-and-events/updates/iasb-updates/january-2019/
Preparers of financial reports | ASIC - Australian Securities and Investments Commission.
(2019). Retrieved from https://asic.gov.au/regulatory-resources/financial-reporting-
and-audit/preparers-of-financial-reports/
Recent rule amendments. (2019). Retrieved from
https://www.asx.com.au/regulation/rules/recent-rule-amendments.htm
Three new accounting standards. (2019). Retrieved from
https://www.bdo.com.au/en-au/accounting-news/accounting-news-october-2017/
three-new-accounting-standards