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.
