June 2011 Illustrative Special purpose financial statements
Financial years ending on or after 30 June 2011
Authors: Rutendo Kaviya and Darryn Rundell, Accounting Technical Group
This publication is a key tool to assist you in meeting your financial reporting obligations, particularly the preparation of special purpose financial statements. Our objective in this publication is to assist you as you respond to the many changes to financial reporting requirements for the June 2011 reporting season.
The June 2011 reporting season continues the themes of previous reporting periods – particularly those of uncertainty and volatility.
As the global economy struggles to emerge from the global financial crisis, shocks from ongoing economic and political crises, together with a series of natural disasters both in Australia and globally, have the potential to undermine confidence and create further uncertainty. The threat of further shocks cannot be discounted.
On top of global developments, Australian-specific uncertainties exist in terms of tax and legislative reform in the context of a finely balanced federal parliament, the move towards a carbon pricing mechanism for Australia, new pushes towards sustainability reporting, and other developments.
This ongoing variability has been reflected from a financial reporting perspective by IFRS, which is effectively designed to reflect the underlying volatility in prices, values and other variables in financial statements. Accordingly, the current reporting period continues the ‘challenge’ of bringing all these competing factors together to produce a set of financial statements reflecting economic realities, market expectations and operating conditions.
After the large number of changes introduced last June, the June 2011 reporting period presents somewhat of a hiatus in core financial reporting changes. Whilst there are some new or amended accounting requirements (e.g. annual improvements) that may impact particular entities, there are not a large number of ‘big ticket’ substantial changes to be considered from a pure accounting perspective.
‘Section A – What’s new in financial reporting?’ provides a summary of the changes to pronouncements as well as links to where you can find further information. ‘Section B - Model special purpose annual report’ illustrates the new and revised accounting pronouncements. ‘Section C – Reporting obligations’ contains useful information on the requirements to prepare, audit and lodge financial statements, as well as reporting deadlines.
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