Unlisted Entity Reporting Deadlines Extended by One Month
ASIC has announced that it will again extend the deadline for all unlisted entities to lodge their financial reports by one month. The extension applies to unlisted entities with reporting dates from 24 June 2022 to 7 July 2022 (inclusive). The relief does not apply to registered foreign companies.
The extension is designed to assist with pressures experienced by entities as well as their auditors due to reduced staff numbers considering the on-going challenges presented by COVID-19. The extended reporting deadline will also assist entities preparing general purpose financial statements, including consolidated financial statements, for the first time.
AASB Board meeting - August 2022
The Agenda and Papers for the AASB meeting on 3 August 2022 are now available.
Key topics for discussion include:
- Development of the Not-for-Profit Private Sector Financial Reporting Framework and Tier 3 Simplified Accounting;
- Post-Implementation Reviews of Not-for-Profit-related Standards; and
- Sustainability Reporting.
New Tier 3 Simplified Accounting for Not-for-profit Private Sector Entities
The AASB is close to finalising its Discussion Paper on a proposed Tier 3 Simplified Accounting reporting framework. The Tier 3 framework is aimed at not-for-profit entities with revenue between $500,000 and $3 million.
Final sweep issues ahead of the Discussion Paper’s release will be discussed at its Board meeting on 3 August 2022.
The draft Discussion Paper is available as part of the AASB agenda papers for its meeting on 3 August 2022.
30 June 2022 Disclosures for Certain For-Profit Entities Preparing Special Purpose Financial Statements
The AASB issued AASB 2022-4 which requires the financial statements of certain entities to disclose the basis upon which the decision to prepare SPFS was made and information about the material accounting policies applied in their SPFS, including the extent of compliance of those accounting policies with the recognition, measurement, consolidation and equity accounting requirements in Australian Accounting Standards.
The Standard applies to for-profit private sector entities that are required only by their constituting document or another document (created before 1 July 2021 and not amended on or after that date) to prepare financial statements that comply with ‘Australian Accounting Standards’ and are non-reporting entities that prepare special purpose financial statements (SPFS) for 30 June 2022.
AIS Extension for Charities in NSW Flood Affected Areas
The ACNC has granted charities in parts of New South Wales affected by recent floods an automatic extension on their annual reporting deadlines.
Charities in the affected postcodes with a reporting period that ends between January and April 2022, will automatically be granted an extension to 31 October 2022 to submit their 2021 Annual Information Statement (AIS).
The postcodes for charities that have been granted an extension can be found here.
Amendments to ASIC Rounding Instrument
ASIC has made amendments to ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 to extend its application to financial reports prepared in accordance with AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.
The amendments also extend ASIC Instrument 2016/191 to sub-funds of a corporate collective investment vehicle (CCIV).
ASIC to communicate negative audit review findings to directors
ASIC has announced that it will routinely communicate negative findings from its reviews of audit files to directors, rather than the current exception basis.
ASIC is of the view that communicating negative review findings to entities will aid audit committees and directors to enquire about the steps auditors are taking to improve the quality and adequate resourcing of audits.
The routine reporting of findings will commence with audit file reviews that will be covered by ASIC’s public inspection reports for the 12 months to 30 June 2023.
Payment Times Reporting Scheme Consultation
Treasury is inviting feedback on three draft guidance notes for the Payment Times Reporting Scheme.
The updated guidance is intended to assist reporting entities in preparing a Payment Times Report and understand Treasury’s expectations when undertaking compliance activities. The consultation follows a review of enquiries and reports from the first year of operation of the scheme.
Submission to Treasury close on 2 September 2022.
IASB Update – July 2022
A summary is available of the IASB meeting held on 18-21 July 2022 which discussed a number of topics including:
- Post-implementation Review of IFRS 9;
- Financial Instruments with Characteristics of Equity;
- Contractual Cash Flow Characteristics of Financial Assets (Amendments to IFRS 9);
- Goodwill and Impairment; and
- Primary Financial Statements.
ISSB Update – July 2022
The IFRS Foundation’s International Sustainability Standards Board (ISSB) had its first board meeting on 20–21 July 2022, reaching an important milestone since its creation.
The ISSB discussed its future priorities as well as reviewed and discussed preliminary feedback from stakeholders on the exposure drafts, IFRS S1 General Sustainability-related Disclosure Requirements and IFRS S2 Climate-related Disclosures.
Financial Reporting Changes for AFS Licensees
From financial years commencing 1 July 2021, for-profit companies, registered schemes and disclosing entities that prepare annual financial reports under Chapter 2M of the Corporations Act 2001 (the Act), and which were not reporting entities, can no longer prepare special purpose financial statements (SPFS).
This change will also affect the financial reporting by AFS licensees under Chapter 7 of the Act, although ASIC has provided transitional relief to some entities.
These changes are given effect through the certification section of the revised ASIC Form FS 70 Australian financial services licensee profit and loss statement and balance sheet.
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