Financial Accounting Newsletter: Regulatory Changes Dec 2017-Mar 2018

This newsletter summarizes the changes and developments in the financial reporting regulatory environment from December 2017 to March 2018, focusing on updates relevant to companies listed on the Australian Securities Exchange (ASX). It covers amended accounting standards, including AASB projects ready for comment (ED 281, ED 280, ED 278) and major amendments by the IASB related to deferred tax assets and disclosure requirements. The newsletter also highlights changes to ASX listing rules regarding reverse takeovers and discusses the political environment's impact, specifically concerns about new lease accounting standards. References to relevant websites are provided for further information. This document is available on Desklib, a platform offering study tools and resources for students.

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Financial Accounting

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Newsletter on Changes in the Regulatory Environment for Financial Reporting for Period
from December 2017 to March 2018
The ISSUE Includes:
Technical Issues in the Reporting Environment
New Changes Ready for Comments
Amendments to ASX Listing Rules
Other Information
Introduction
This newsletter is prepared with the aim of discussing the recent change that took place in
the regulatory environment for financial reporting from the period December 2017 to March
2018. The newsletter has provided specific knowledge to the staff members of the various
accounting firms so that they can increase their understanding of the various issues. The
information provided to them will assist them to develop and review the general purpose
financial statements’ of business entities adequately that are listed on ASX.
Changes in the Accounting Environment
This type of news is essential to be provided to the staff members so that they can gain
knowledge regarding the new standard issues and the necessary changes that they will cause in
the financial reporting framework.
Amended Accounting Standards
AASB Projects Ready for Comments
There are many ongoing projects undertaken by AASB that read waiting to get reviewed
on the exposure draft for creating a new standard. These include ED 281 for accounting
estimations, ED 280 for changes in measurements of Property, Plant and equipment and ED 278
requiring changes in the reporting of operating segments…You can read more information on
this on: http://www.aasb.gov.au/Work-In-Progress/Pending.aspx

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Amended Accounting Standards
It is significant to note by the staff members that major amendments that are been made
by the IASB in relation to accounting standard are changes in deferred tax assets specially for
unrealized losses (Refer to IAS 12) and changes in disclosures requirements of IAS 7. As per the
IASB all the accounting standards that have been reviewed and made changes by board members
of IASB has to be followed by all the business corporations after the date 31st December 2017.
There is some more new addition that is made IASB which is in relation to IFRS 9. The IASB
has issued the new classification requirements for classifying and measuring the financial assets
like debt and equity financial instruments. There has been major update for some accounting
policies related to the employee benefits.
(You can get more information on:
https://www.iasplus.com/en/othernews/new-and-revised/december-2017)
Amendments to ASX listing rules
The ASX is currently planning to make and implement amendments for reverse takeovers
that are defined under chapter 7, 14 and 19 of the listing rules. As per these changes made in the
ASX listing rules, bidders need to gain approval from the shareholders in case of reverse
takeover case.
(You can get more information on:
http://www.mondaq.com/australia/x/656758/listing+rules+flotation/ASX+Listing+Rules+amend
ed+reverse+takeovers
Political Environment Impact

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There is increasing concern in Australia among the business entities relating to
changes in the accounting standards for recognition of leases. The new accountings standard has
required identifying all the leases on the balance sheet to provide all the necessary information to
the investors. However, airline companies are expressing their huge disagreement for
implementation of these new accounting standards as it will cause them to incur high
administrative costs. You can read more information on this on: http://mhfa.net/2018/03/05/new-
lease-accounting-standards/

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References
Kingsley, H. and Zegrati, K. (2017). Australia: ASX Listing Rules amended – reverse takeovers.
Retrieved 12 March, 2018, from
http://www.mondaq.com/australia/x/656758/listing+rules+flotation/ASX+Listing+Rules+amend
ed+reverse+takeovers
Australian Accounting Standards Board. (2017). Work in progress – pending. Retrieved 3
March, 2018, from http://www.aasb.gov.au/Work-In-Progress/Pending.aspx
New and revised pronouncements as at 31 December 2017. (2017). Retrieved 3 March, 2018,
from https://www.iasplus.com/en/othernews/new-and-revised/december-2017
New Lease Accounting Standards. (2018). Retrieved 3 March, 2018, from
http://mhfa.net/2018/03/05/new-lease-accounting-standards/