Accounting Alert - March 2013
Staying on top of developments
Progress on the new financial reporting framework continues apace. The External Reporting Board has issued exposure drafts of the simple format reporting standards that will apply to public benefit entities. These standards are designed to be simple to use with the requirements for each tier incorporated in a single standard supported by (optional) “fill-in-the-box” templates in excel and guidance notes on how to complete the templates.
Proposed legislative changes mean that many not-for-profit entities, such as charities, will be required to prepare financial statements in accordance with generally accepted accounting practice (GAAP) once the legislation is passed. The simple format reporting standards will apply to these entities if their expenses are less than $2 million.
Submissions on the standards that are proposed to apply for public benefit entities in the public sector are due by 28 March 2013. As this will be the first time many not-for-profit entities will have to comply with GAAP, a longer submission deadline has been provided – 28 June 2013. This Accounting Alert summarises the proposed requirements for reporting in accordance with the simple format standards.
We also report on a number of recent developments in financial reporting.
We will continue to keep you apprised of developments as they occur, so watch this
In this issue:
- Financial Reporting Framework – Simple format reporting
- Investment entities amendments (update)
- IASB defers key projects
- Proposed changes to impairment disclosures
- Proposed scope amendment for IFRS 11: Joint Arrangements
- Proposed clarification on when unrealised profits are eliminated when using equity accounting
- Proposed clarification regarding depreciation and amortisation methods
- Proposed changes to financial instruments standards
- IFRS 13: Fair value measurement guidance