Accounting News - February 2018

In this edition, we look at how the ‘quadruple threat’ (four new accounting standards on revenue, income, financial instruments, and leases) will impact the financial statements of not-for-profit entities.

On the compliance front, we draw your attention to the results of ASIC’s recent financial reporting surveillance program, as well as the decision in the recent ASIC v Godfrey case, highlighting the risks to directors and senior executives of failing to comply with the Corporations Act 2001 and Accounting Standards.

Recent changes to US tax legislation mean that income tax balances will need to be estimated according to these new rules. Our article on these changes showcases the different approaches to accounting for these under IFRS and US GAAP.

And lastly, we summarise the recent annual improvements issued by the International Accounting Standards Board from its 2015-2017 cycle.

• Quadruple threat – Four new accounting standards for not-for-profit entities
• Tax accounting implications for US companies and subsidiaries subject to US tax rules
• Almost one in four financial reports reviewed by ASIC result in enquiries on appropriate accounting treatment
• ASIC v Godfrey - Risks for directors and senior executives of companies who fail to comply with the Corporations Act 2001 and Accounting Standards
• Annual improvements 2015-2017 cycle – changes to IFRS 3 Business Combinations, IFRS 11 Joint Arrangements, IAS 12 Income Taxes and IAS 23 Borrowing Costs