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Financial reporting may not have been top of mind for many entities in recent months but, unfortunately,
the 30 June reporting season is now upon us. This year will be unlike previous years, with entities having
to deal with the unique challenges presented by COVID-19, as well as a few new (and not always simple)
With AASB 2020-2 being mandated, the circumstances in which SPFS can still be prepared by for-profit private sector entities will be limited. However, there is a significant number of entities that will not be captured by the new standard, or will be captured but will only implement it from 1 July 2021, meaning SPFS will still exist that state compliance with AAS.
In March, the AASB reached a major milestone in its project to overhaul the Australian financial reporting regime when it approved the amending standard, AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities, that will see the end of special purpose financial statements (SPFS) for certain for-profit private sector entities
Here in Australia, it is probably safe to say that the central element of the Federal Government’s business support package in response to the coronavirus outbreak was the JobKeeper scheme. This scheme is essentially a wage subsidy aimed at assisting employers to retain employees on their books during the COVID-19 crisis despite its economic consequences.
Many Australian entities will be applying the new leases standard, AASB 16, for the first time in their 30 June 2020 financial statements. It is unfortunate timing, to say the least, considering all that has transpired over the past few months. Lessors have been offering rent concessions such as rent reductions, rent holidays and rent deferrals to lessees in response to current economic conditions, further complicating lease accounting under a new standard, during a time when many entities are facing significant challenges.
Reforms to Australia’s whistleblowing laws were passed in 2019 and apply to almost all companies. The amendments include expanding protections and remedies for whistleblowers in the corporate and financial sectors, as well as increasing legislative requirements for companies.
On 12 March 2020, the Australian Accounting Standards Board (AASB) issued narrow-scope amendments to AASB 101 Presentation of Financial Statements. As a result, paragraphs 69 to 76 which set out the requirements for classifying liabilities as current or non-current, have been changed.
For a contract with a customer to be within the ambit of AASB 15 Revenue from Contracts with Customers instead of AASB 1058 Income of Not-for-Profit Entities, the arrangement must 1) be enforceable, and 2) contain sufficiently specific performance obligations. This article focuses on the second requirement - whether the promises in a contract are detailed enough for you to know when you have met them.