News

Our offices will be closed for the holiday period from cob 22 December 2021 and will re-open on Monday 10 January 2022.  We wish you a happy and safe holiday period.

To help entities provide accounting policy disclosures that are more useful to the users of their financial statements, AASB 2021-6 makes amendments to certain Australian Accounting Standards.

ED 316 proposes amendments to AASB 101  Presentation of Financial Statements to improve the information entities provide about long-term debt with covenants. The ED incorporates IASB  ED/2021/9.

ED 317 proposes disclosure-only amendments to AASB 107 Statement of Cash Flows and AASB 7 Financial Instruments: Disclosures . The proposed amendments are intended to complement the existing requirements in AASB Standards that apply to supplier finance arrangements. The ED incorporates IASB ED/2021/10.

ED 315  proposes transition relief to assist entities with the first-time preparation of general purpose financial statements (GPFS) in some circumstances.

The Australian Accounting Standards Board has issued a  Media Release  on a Proposed Climate Change Standards Framework

The AASB would like to acknowledge the passing of Atsushi Kogasaka, Chair of the Accounting Standards Board of Japan (ASBJ) on 16 November 2021.  AASB Staff had the opportunity to work with him through the AOSSG and on joint ASBJ and AASB Projects. Our condolences are with his family and colleagues at this time.

The AASB has released Position Statement 1,  which is a joint statement with the FRC and AUASB, setting out the institutional arrangements through which Extended External Reporting standards are to be developed in Australia.

Invitation to Comment ITC 48 Extended External Reporting sets out the AASB’s proposed draft Position Statement relating to Extended External Reporting (EER).

The AASB would like to acknowledge the sad passing of Won-Hee Han, Technical Director of the Korea Accounting Standards Board (KASB). Many of the staff worked closely with Won-Hee through the AOSSG, ASAF and on joint KASB and AASB Projects. Our condolences are with his family and colleagues at this time.

The Action Alert for the 184 ^th AASB board meeting is now available. The AASB Board met in public via videoconference on10-11 November 2021.

As noted in the AASB Newsletter issued 4 November, at COP26 (the UN global summit to address the critical and urgent issue of climate change) the IFRS Foundation announced the establishment of a new International Sustainability Standards Board (ISSB) to develop—in the public interest—a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. As part of this announcement, the IFRS Foundation published two prototype standards:

• General Requirements for Disclosure of Sustainability-related Financial Information Prototype ; and
• Climate-related Disclosures Prototype —which includes a supplement Technical Protocols for Disclosure Requirements (Climate-related Disclosures) .

The Agenda and Papers for the AASB Meeting 184, to be held on 10-11 November 2021 are now available.

This meeting will be held by videoconference. Members of the public wishing to attend the public sessions must register their interest by emailing standard@aasb.gov.au detailing:

Name

Entity

Email address and

Details of sessions they wish to join

By 8 November. Only attendees that have pre-registered will be provided with registration details to join the Zoom videoconference.

The AASB has released a new staff paper Going Concern Disclosures: A Case for International Standard-Setting which identifies potential areas for improvement relating to the existing going concern disclosure requirements in the IFRS Standards.

AASB Chair, Dr Keith Kendall, welcomed the appointment of a new member of the Australian Accounting Standards Board,  as announced by the Financial Reporting Council  (FRC).

We would like to hear from you. The AASB has published its Invitation to Comment
ITC 46 AASB Agenda Consultation 2022–2026 to gather views on the potential domestic projects to be included in its work program and priorities for the period 2022–2026.

Your feedback is requested to inform the IASB’s Post-implementation review of the classification and measurement requirements including the related disclosure requirements in IFRS 9 Financial Instruments.

The staff paper Review of Executive Remuneration Disclosure Requirements assesses how the current Australian executive remuneration disclosure requirements compare to selected overseas jurisdictions for for-profit (listed), not-for-profit and public sector entities to provide further input into the public discussion on this topic.

ED 314 incorporates IASB ED/2021/7, which proposes a reduced set of disclosure requirements for eligible subsidiaries without public accountability that apply IFRS Standards.

AASB staff will hold a roundtable to discuss ED 311 Management Commentary on 7 October 2021 (Thursday) from 5.00 pm – 6.30 pm AEDT.

The Action Alert for the 183 ^rd AASB board meeting is now available. The AASB Board met in public via videoconference on 8-9 September 2021.

The Agenda and Papers for the AASB Meeting 183, to be held on 8-9 September 2021 are now available.

This meeting will be held by videoconference. Members of the public wishing to attend the public sessions must register their interest by emailing standard@aasb.gov.au detailing:

• Name
• Entity
• Email address and
• Details of sessions they wish to join

By 6 September. Only attendees that have pre-registered will be provided with registration details to join the Zoom videoconference.

ED 313 proposes a narrow-scope amendment to the transition requirements in AASB 17 Insurance Contracts for comparative information.

The Action Alert for the 182nd AASB Meeting is now available. The AASB Board met in public via videoconference on 4 August 2021. At the meeting the Board made key decisions in relation to:

• Business Combinations under Common Control
• Not-for-Profit Private Sector Financial Reporting Framework
• IPSASB Exposure Drafts on Public Sector Measurement

ED 312 proposes further amendments that would require entities to disclose material accounting policy information rather than significant accounting policies.

The AASB has updated its Standard-Setting Frameworks , which set out the principles followed in setting the requirements of Standards for for-profit and not-for-profit entities.

The Agenda and Papers for the AASB Meeting 182, to be held on 4 August 2021 are now available.

Exposure Draft Management Commentary webinar, featuring IASB member and staff.

On 6 July 2021, AASB staff hosted a virtual outreach event to discuss ITC 45 on the IPSASB’s proposed new ‘current operational value’ measurement basis for non-cash generating assets in the public sector.

Two vacancies currently exist for appointment as a part-time member of the Australian Accounting Standards Board (AASB), starting in January 2022 for a three year term (with a possible extension available).  Click here to obtain further information from the Financial Reporting Council (FRC) website)

The AASB issued AASB 2021-5 to clarify the accounting for deferred tax on transactions that, at the time of the transaction, give rise to equal taxable and deductible temporary differences.

The AASB is now open to receiving Expressions of Interest from researchers for the 2022 Research Forum.

The Action Alert for the 181 ^st AASB board meeting is now available. The AASB Board met in public via videoconference on 21 – 22 June 2021.  At the meeting the Board made key decisions in relation to:

• Not-for-Profit Private Sector Financial Reporting Framework
• Tier 2 Disclosure Amendments
• Audit Engagement-related Disclosures
• Insurance Activities in the Public Sector
• IPSASB Exposure Drafts on Public Sector Measurement
• AASB Agenda Consultation
• IASB Agenda Consultation

The AASB issued AASB 2021-4 to amend the modified retrospective transition method for service concession grantors measuring the Grant of a Right to the Operator (GORTO) liability when implementing AASB 1059.

The Board and staff of the AASB would like to congratulate Mike, a former AASB Board Member, on being awarded an AM in the recent Queen’s Birthday honours.

This was to acknowledge his significant service to accounting and to the public sector. 

AASB staff invite not-for-profit public sector stakeholders to participate in a virtual outreach event to discuss ITC 45 on Tuesday, 6 July 2021 at 2–4pm AEST.

ED 311 proposes a comprehensive framework that entities could apply when preparing management commentary that complements their financial statements. The proposals represent a major overhaul of IFRS Practice Statement 1 Management Commentary .

A vacancy has arisen for the on the Audit, Finance and Risk Committee for the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB).

The AASB & AUASB are seeking an outstanding person, who can provide sound judgement and stewardship of the Committee, demonstrate extensive financial expertise, industry leadership and will have community standing as an experienced governance officer.

The Agenda and Papers for the AASB Meeting 181, to be held on 21-22 June 2021 are now available.

The staff paper :  Comparison of Narrative Reporting Requirements Applicable to For-Profit Entities examines several aspects of narrative reporting requirements for for-profit entities in Australia and selected overseas jurisdictions through their comparison to the draft disclosure objectives expected to be included in the forthcoming IASB’s Exposure Draft on revised IFRS Practice Statement 1 Management Commentary (MCPS) to provide early input into the AASB’s consultation on the IASB’s proposals.

On 25 May 2021, AASB and AUASB staff co-presented the third webinar in a series on the removal of special purpose financial statements and the introduction of simplified disclosures.

The AASB is proposing to amend AAS 121 The Effects of Changes in Foreign Exchange Rates to help companies determine whether a currency can be exchanged into another currency and what accounting requirements to apply if the currency cannot be exchanged.

On 10 May 2021, AASB staff hosted the second webinar in a series on the removal of special purpose financial statements and the introduction of simplified disclosures.

Dr Kim Langfield-Smith has been engaged by the FRC to undertake an independent Post-Implementation Review of AASB 1049.

Research Report 16  presents an overview of the academic literature on financial reporting by non-corporate and small entities. The Report’s overall objective is to answer key questions about the coverage of non-corporate and small entities’ reports, their user and stakeholder needs, and their compliance and regulatory oversight.

On 27 April 2021, AASB staff hosted the first webinar in a series, on the removal of special purpose financial statements and the introduction of simplified disclosures.

AASB 2021-3 extends by one year the application period of the practical expedient in AASB 16 Leases to help lessees accounting for covid-19-related rent concessions.

The  Action Alert  for the 180th AASB Board meeting is now available.  The AASB Board met in public via videoconference on 20-21 April 2021 and made key decisions in relation to:

AASB 2021-2 amends AASB Standards to improve accounting policy disclosures and clarify the distinction between accounting policies and accounting estimates.

AASB 2021-1 provides limited optional comparative information relief for not-for-profit entities adopting AASB 1060  early by transitioning from either Tier 1 or Tier 2 – Reduced Disclosure Requirements to Tier 2 – Simplified Disclosures.

AASB staff will hold a roundtable to discuss ITC 42 Business Combinations under Common Control on 5 May 2021 (Wednesday) from 4.00 pm – 5.30 pm AEST.

Your feedback is requested to inform the IASB’s Request for Information on the Third Agenda Consultation.

ED 309   Disclosure Requirements in Australian Accounting Standards—A Pilot Approach  proposes a new approach to developing disclosure requirements in Australian Accounting Standards (AAS) and new disclosure requirements for AAS on fair value measurement and employee benefits. These proposals would enable entities to enhance their judgement and reduce ‘boilerplate’ information.

AASB staff will host a series of webinars on the removal of SPFS and the introduction of simplified disclosures.

The Office of the Australian Accounting Standards Board would like to extend its congratulations to David Boymal, who has been included in the group of 2021 inductees into the Australian Accounting Hall of Fame.

ED 308   Covid-19-Related Rent Concessions beyond 30 June 2021  proposes to extend by one year the practical expedient added to AASB 16 Leases in 2020 to help lessees in accounting for covid-19-related rent concessions.

ED 307 proposes a new accounting model that would require companies subject to rate regulation to give investors better information about their financial performance.

The IPSASB has issued ED 75 Leases and a related Request for Information on concessionary leases. Comments are due to the IPSASB by 17 May 2021.