May 2012
Reporting submission: Superannuation Legislation Amendment (PDF)
Date issued: 17 May 2012
CPA Australia commends the Australian Government initiative to improve transparency. However, the proposals in Exposure Draft: Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 do not reflect a principles-based framework of reporting.
We highlight our research initiative into the effectiveness of reporting in the superannuation industry and propose to provide further insight before the Bill is presented to parliament. Principles including information that facilitates "look through" to detail, and information that adequately demonstrates the discharge of responsibilities by trustees and other key management personnel would be useful. Further regulations and guidance are necessary for the effective operation of the proposals. Proposals should also include disclosure of costs and methods for calculating returns and average cost allocations.
IFRS in the ASEAN region (PDF)
Date issued: 8 May 2012
The CPA Australia External Reporting Centre of Excellence hosted its second meeting of 2012 in the Singapore office on Tuesday 24 and Wednesday 25 April. The theme was IFRS: Adding values to economies within the ASEAN region and beyond. As Singapore has a strong position in the Association of Southeast Asian Nations (ASEAN) economies, Singapore was the ideal place to discuss issues such as barriers to full convergence in Asia.
April 2012
AASB issues amending standard (PDF)
The Australian Accounting Standards Board (AASB) has issued amending standard AASB 2012–1: Amendments to Australian Accounting Standard – Fair Value Measurement – Reduced Disclosure Requirements. It sets out reduced disclosure requirements for Tier 2 entities applying AASB 13: Fair Value Measurement, and amends reduced disclosure requirements for other Australian Accounting Standards affected by the issue of AASB 13.
March 2012
ACNC implementation design: Submission (PDF)
Date issued: 10 March 2012
CPA Australia has made its submission to the Australian Charities and Not-For-Profits Commission (ACNC) Taskforce. While CPA Australia supports the creation of a federal regulator for the not-for-profit sector, CPA Australia does not believe the project has had the benefit of adequate time, planning or feedback from stakeholders.
An unintended consequence of the proposals may be the requirement to apply all accounting standards by those required to prepare financial reports, as they are likely to be "reporting entities" if these financial reports are made publicly available. This is likely to be an onerous requirement for the smallest of charities and we recommend a review of the financial reporting requirements to address this issue.
The preparation of Special Purpose Financial Reports will be a suitable option for those that are not reporting entities. We support the "one stop shop" and "charity passport" proposals, however for these proposals to allow the ACNC to function as the primary regulator, the cooperation of other national and state and territory regulators is necessary. Current actions do not provide sufficient evidence in this regard, and CPA Australia seeks clarification.
February 2012
Submission on Exposure Draft 222 – Revenue from contracts with customers
Date issued: 27 February 2012
The submission recognises that the exposure draft (ED) is an improvement from the previous version, with many of the issues identified in the previous ED addressed in this version.
The submission highlights that:
- further clarity is needed in recognising revenue when goods or services are transferred over time
- the Joint Accounting Bodies (JAB) do not agree with the proposal to recognise uncollectible items adjacent to revenue, this should be dealt with through the current impairment of financial assets project
- the JAB do not agree with the proposals to apply the onerous test for recognising losses at the performance obligation level, the test should be set at the contract level
- the JAB are concerned with the volume of disclosures required in the ED and recommend this be addressed
- the current revenue standard includes provisions for revenue arising from interest, dividends and royalties, we recommend the new revenue standard include provisions to address this.
The JAB submitted comment on ED 2011/6 Revenue from contracts with customers (PDF) to the Chairman of the International Accounting Standards Board, and on ED 222 Revenue from contracts with customers (PDF) to the Chairman of the Australian Accounting Standards Board on 9 February 2012.
January 2012
Extending related party disclosures to the not-for-profit public sector (PDF)
Date issued: 16 January 2012
The Joint Accounting Bodies’ submission supports the proposal to delete paragraph Aus1.3 and thereby remove the current scope exception that not-for-profit public sector entities do not apply paragraphs 1 to 28 of AASB 124 Related Party Disclosures.
Submission on New Zealand financial reporting consultation
Date issued: 16 January 2012
CPA Australia generally supports the proposals in the consultation paper relating to general purpose financial reporting by for-profit entities (PDF), and recommends using the International Financial Reporting Standard for small-to-medium enterprises standard for Tier 2 entities.
In respect of the consultation relating to public benefit entities (PDF), CPA Australia understand the reasoning behind the decision to adopt separate standards for the public benefit and for-profit sectors.
Fair value disclosure amendments: Tier 2 entities (PDF)
Date issued: 16 January 2012
The submission is supportive of the proposed amendments in the standard as they remove a series of disclosures that are burdensome for entities that do not have public accountability.
Submission to the United Kingdom FRC on proposals to reform (PDF)
Date issued: 16 January 2012
The submission recommends that the United Kingdom Financial Reporting Council (FRC) retain their structure with appropriate powers delegated to operating bodies within the structure. CPA Australia supports more regulatory powers to demonstrate independent oversight of the audit function and powers to directly communicate with and regulate audit firms where appropriate.
SEC still deciding on convergence with IFRS
Date issued: 16 January 2012
James Kroeker, Chief Accountant, United States Securities and Exchange Commission (SEC), has announced that SEC is still “months away” from finalising their decision on convergence with International Financial Reporting Standards (IFRS). He also referred to the outstanding convergence projects relating to leases, revenue and financial instruments and the stages of completion they are at, along with other considerations the SEC will deliberate in the coming months.
AASB tentative agenda decisions (PDF)
Date issued: 16 January 2012
The Australian Accounting Standards Board (AASB) has published its tentative agenda decision not to add three specific matters discussed at their board meeting to their work program. These matters relate to: scope of AASB 112 Income Taxes; accounting for the starting base allowance market value uplift in the proposed Mineral Resource Rent Tax Bill; and substantive enactment of resource rent tax bills.
AASB issues amending standard (PDF)
Date issued: 16 January 2012
The Australian Accounting Standards Board (AASB) has issued amending standard AASB 2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049.
The objective of the amendments are to improve AASB 1049 Whole of Government and General Government Sector Financial Reporting at an operational level and are applicable to annual reporting periods from 1 July 2012.
Early adoption is permitted for annual reporting periods from 1 January 2009, provided AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments is also applied to the same period.
December 2011
ASIC Regulatory Guide 230: non-IFRS financial information
Date issued: 15 December 2011
The Australian Securities and Investments Commission (ASIC) has a released Regulatory Guide 230 (PDF) to promote meaningful communication of non-International Financial Reporting Standard (IFRS) financial information to users, while ensuring such information is not misleading. The guide also seeks to establish ASIC’s views on the disclosure of such information.
IFRS: where to next?
Date issued: Monday 5 December
CPA Australia, as part of the Joint Accounting Bodies, recently hosted the International Financial Reporting Standards (IFRS) Conference 2011: Asia-Oceania, featuring keynote speaker, Hans Hoogervorst, Chairman, International Accounting Standards Board.
“Wherever I go in the world I am asked one question more than any other. Will the United States come on board with IFRSs, and if so, when and how?” said Mr Hoogervorst in a speech that covered the prospects for global standards and the reform of financial instruments accounting. Other topics covered at the conference included leases, Islamic banking and revenue recognition.
Hans Hoogervorst, Chairman, International Accounting Standards Board.
November 2011
Financial Reporting Obligations for Small Co-operatives (PDF)
Date issued: 10 November 2011
New South Wales Fair Trading has released for comment Discussion Paper Financial Reporting Obligations for Small Co-operatives to help draft new provisions for financial reporting.
A key change under the proposed federal legislation is the simplification of financial reporting by small co-operatives. The regulations will apply to all states and territories, and will set out the definition of a small co-operative and the obligations for small co-operatives to report to members.
Submissions are due to News South Wales Fair Trading by Wednesday 7 December. CPA Australia members can email their comments on the discussion paper to professionalstandards@cpaaustralia.com.au by Wednesday 30 November.