Peppercorn Leases & the New Revenue Standard AASB 1058: Right-of-Use Asset at Fair Value

CaseWareAASB 1058, Accounting Standards, Carmen Ridley, Financial Reporting

The following just in ‘hot off the press’ from our financial reporting content expert, Carmen Ridley AASB member. An update from the Nov 2018 meeting has been added to this article. The accounting treatment of peppercorn leases under the new revenue standard AASB 1058 Income of NFP Entities has caused significant discussion in relation to the recognition of a right-of-use … Read More

Should I use AASB 120 Accounting for Government Grants and Disclosure of Government Assistance?

CaseWareAASB 120, Accounting Standards, Carmen Ridley, CaseWare News

Our Financial Reporting Template expert content provider & AASB member, Carmen Ridley explains who can legitimately use AASB 120 and why. We have an accounting standard AASB 120 Accounting for Government Grants and Disclosure of Government Assistance but there seems to be some confusion over who can use this standard and I have received a number of questions about this. Many entities … Read More

AASB 16 Lease accounting  – which discount rate?

CaseWareAccounting Standards, Carmen Ridley, CaseWare News, Financial Reporting

What is an appropriate discount rate for the calculation of lease liabilities? AASB 16 requires that most leases are brought on the balance sheet from 1 January 2019. I have been asked many times about the appropriate discount rate for the calculation of lease liabilities. Ideally, all leases would contain an implicit interest rate and then the answer is obvious … Read More

Revenue Recognition AASB 15 – What companies need to consider and DO NOW!

CaseWareAASB 15, Accounting Standards, Auditing, Auditing Standards, Carmen Ridley, Financial Reporting, Industry News, Legislation & Regulation

Author: Carmen Ridley, Principal – Australian Financial Reporting Solutions (www.afrs.com.au). Member of the AASB, and a specialist consultant for CaseWare Australia & New Zealand. The panic has finally kicked in I have been presenting about the changes to the revenue accounting standard AASB 15 for a number of years, since IFRS 15 was issued in May 2014 (followed by AASB … Read More

ASIC Update: Focus Areas for 2017-18 Released

CaseWareAccounting Standards, Carmen Ridley, Financial Reporting, Industry News

ASIC June 30 2018 Reporting

ASIC recently released the latest focus report for 30 June 2018 reporting. Titled “Major changes affecting reported net assets and profit, and other focuses for 30 June 2018 reporting”, ASIC has taken the opportunity to remind companies to focus on new requirements that can materially affect reported assets, liabilities and profits. In all, the ASIC article has a total of … Read More

The End is Nigh  – No more special purpose financial statements (SPFS) for many entities

CaseWareAccounting Standards, Carmen Ridley, Financial Reporting, Industry News, Legislation & Regulation, opinion

Carmen Ridley

Our content expert, Carmen Ridley provides a timely review of the future demise of the SPFS reporting format, in a bid by the AASB to ” find a solution to improve the consistency, comparability, usefulness and credibility of financial reporting in Australia”. SPFSs Likely to be Dropped from Reporting Formats? The recent release of the IASB Revised Conceptual Framework (RCF)  contains … Read More

Advocating for Change – Simplification of Annual Reports – Remuneration Reporting

CaseWareAccounting Standards, CaseWare News, Financial Reporting, Industry News

In their recent publication, Group of 100 in conjunction with PwC have completed an example case study of a clearer executive remuneration report, putting forward the case for change in the prescribed reporting of remuneration within an annual report. In their document, they outline the requirement to change the current standards and align Corporations Act legislation accordingly. They state that … Read More

Fatal Flaw draft of Revenue for Not-for-Profits has been released for review

CaseWareAccounting Standards, Carmen Ridley, Financial Reporting, Industry News, Legislation & Regulation

The AASB has released the final chance to comment on the proposed revenue for NFP accounting standard – a fatal flaw draft is open for comment until 21 October with the final standard expected to be released in December 2016. We encourage all NFP entities and their auditors to review this document and provide comments to the AASB about ‘big … Read More

Accounting estimates and judgements note – Key requirement, generally needs improvement

CaseWareAccounting Standards, Financial Reporting

Carmen Ridley on “Accounting estimates and judgements note”. During my training sessions and financial statement reviews, I spend a lot of time talking about the importance of this note and trying to improve it. This note is important since it allows the users to understand the judgements and estimates, i.e. uncertainties in compiling the financial statements. They can then analyse … Read More

Reporting an entities expenses on the Statement of Profit & Loss and Other Comprehensive Income

CaseWareAccounting Standards, Financial Reporting

Carmen Ridley outlines how expenses are best reported. Entities have a choice about how to report their expenses on the face of the statement of profit & loss and other comprehensive income – by either nature or function, but what does this actually mean? Expense type Description Example Nature Type of expense? Raw materials consumed Changes in work in progress … Read More