Accounting News - March 2020

In this edition, we discuss the hot topic of coronavirus and how it could impact 31 December 2019 and 30 June 2020 financial statements. We continue to explore further aspects of the new leases standard (IFRS 16), including how to identify when a lease is not a lease, and how to determine a lessee’s incremental borrowing rate, and illustrate more examples of conditions in grant and donation contracts that could result in ‘sufficiently specific’ performance obligations for not-for-profit entities under AASB 15. Lastly, we summarise ASIC’s findings from its surveillance of 30 June 2019 financial reports.

CORONAVIRUS

• How will coronavirus impact your financial statements?

NEW LEASES STANDARD – IFRS 16

• When is a lease not a lease – Does the lessee have the right to direct the use of the asset?
• Determining a lessee’s incremental borrowing rate – Dispelling the myths
• BDO Lead Software-as-a-Service (BDO Lead SaaS)
• BDO Lease Management Services (Outsourcing of your lease accounting)

NOT-FOR-PROFIT ENTITIES

• NFPs – More examples of ‘sufficiently specific’ performance obligations under AASB 15

REGULATORY ACTIVITY

• Almost 25% of financial reports reviewed by ASIC result in enquiries on the appropriate accounting treatment

OTHER

• Watch our most recent webinar on Leases: Issues determining the Incremental borrowing rate, held on 18 March