Wage underpayment FAQS

By Cutcher & Neale Accounting and Financial Services - March 25, 2021

Wages underpayment has become a pressing issue in the Australian economy. Several large businesses have admitted to having (often inadvertently) underpaid staff.

The Australian Accounting Standards Board has released Staff FAQs – Remuneration underpayments to remind entities of the standards that might apply when accounting for underpayments.

Three questions posed and answered are:

  • In what year should the payments be recorded?
  • How do I determine whether any prior-year payments are material and require a restatement of the financial statements? and
  • What disclosures are required?

View the document www.aasb.gov.au/admin/file/content102/c3/FAQ_WageUnderpayments_07-20.pdf

If you would like to discuss this further with one of our assurance team members, please contact us.

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