June 2014 Large proprietary company model financial statements
Financial years ending on or after 30 June 2014
This publication is a key tool to assist you in meeting your financial reporting obligations, particularly the preparation of the annual financial statements. Our objective in this publication is to assist you as you respond to changes to financial reporting requirements for the June 2014 reporting season.
June 2014 financial reporting will see application of new standards in some major areas like consolidation, joint arrangements, fair value measurements, and employee benefits, including extensive disclosure requirements. Some of the new standards/interpretations that are mandatorily applicable to June 2014 financial year ends for the first time are:
- AASB 10 Consolidated Financial Statements
- AASB 11 Joint Arrangements
- AASB 12 Disclosure of Interests in Other Entities
- AASB 13 Fair Value Measurement
- AASB 119 (2011) Employee Benefits
- AASB 127 (2011) Separate Financial Statements
- AASB 128 (2011) Investments in Associates and Joint Ventures.
It is imperative that entities understand, assess and ensure that relevant policies and functionalities are in place to implement and comply with the changes.
In addition to the above list of major accounting standards, other new and amended reporting requirements that must be applied for the first time for the June 2014 year-end include:
- Amendments to AASB 7 Financial Instruments: Disclosures regarding rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar arrangement
- Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle, that includes clarification of the requirements for comparative information (AASB 101 Presentation of Financial statements), classification of servicing equipment (AASB 116 Property Plant and Equipment), and tax effect of the distribution to holders of equity instruments (AASB 132 Financial Instruments: Presentation)
- Minor amendments to the Australian Conceptual Framework, AASB 1 First-time Adoption of Australian Accounting Standards, and AASB 1048 Interpretation of Standards that removed Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia from the list of ‘other Australian interpretations’ contained in AASB 1048.
This publication is organised into three sections:
- Section A – What’s new for financial reports at June 2014?
This section of the publication summarises key changes and topical issues for consideration in preparation of annual reports at 30 June 2014
- Section B – Model annual report
This section of the publication contains an illustrative annual report for a fictional company, GAAP Holdings Large Proprietary (Australia) Pty Limited
- Section C – Reporting obligations
This section contains useful information on the requirements to prepare, audit and lodge financial statements, as well as reporting deadlines.