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The International Accounting Standards Board (IASB) has recently issued the Exposure Draft Onerous Contracts – Cost of Fulfilling a Contract in which it clarifies and provides guidance on what is meant by ‘costs of fulfilling a contract’ when assessing whether a contract is onerous under IAS 37 (AASB 137 in Australia). The clarifications may affect construction, manufacturing and service companies more so than others.
On 25 January 2019, the Australian Securities and Investments Commission (ASIC) announced the results from its review of 30 June 2018 financial reports of listed and other public interest entities.
In March 2018, the International Accounting Standards Board (IASB) issued the revised Conceptual Framework. This, in all probability, marked the beginning of the end for special purpose financial statements (SPFS) for entities that are required to prepare financial statements under Australian Accounting Standards.
IFRS 16 (or AASB 16 in Australia) was first added to the International Accounting Standards Board’s agenda back in 2006. It was officially issued by the IASB in 2016. A standard that took a decade to develop can only mean one thing: big change.
With AASB 15 Revenue from Contracts with Customers now in play for most entities, implementation issues are coming to the fore for those entities that are only getting to grips with the standard now. The standard is detailed and complicated and by no means easy to apply, and many entities have underestimated the impact on their organisations.
The Australian Securities & Investments Commission has asked 17 entities to explain the accounting treatments of 20 matters. This follows a review of the 31 December 2017 financial reports of 90 listed and other public-interest entities.