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Welcome to the seventeenth edition of Accounting & Assurance News Today for 2008. What follows is a brief update on changes and proposed changes in the financial reporting and assurance sphere.
1. Sydney Corporate Reporting Discussion Group – change of date to 30 June 2008
The Institute’s next Corporate Reporting Discussion Group (CRDG) meeting in Sydney was scheduled for 16 June 2008. However, in order to secure Doug Niven (Deputy Chief Accountant, Australian Securities and Investments Commission (ASIC)) as our special guest speaker, the date has been changed to Monday 30 June 2008.
Doug will speak on what preparers of financial reports need to focus on for 2008.
An invitation containing further details will be sent out in June.
2. The Corporate Reporting Discussion Group is coming to Melbourne
The Sydney CRDG, designed primarily for members in business who specialise in corporate reporting, is so popular that we would like to start a similar group in Melbourne. The Sydney group meets for 90 minutes bi-monthly at lunchtime to discuss current topical issues. An invited speaker, who is an expert in the field of discussion, will normally present on the topic with the opportunity for questions and/or discussion throughout.
We would like to hear from anyone who is interested in attending a Melbourne Discussion Group. Members can register their interest by emailing crdg@charteredaccountants.com.au. Interested members are also encouraged to email suggestions for discussion topics to that address.
We are also looking for a volunteer to chair the group for at least its first twelve month period. If you are interested in becoming involved, please email the same address and let us know.
3. AASB meeting agenda – 21-22 May 2008
The Australian Accounting Standards Board (AASB) has released its draft meeting agenda (pdf) for its next meeting in Melbourne on 21-22 May 2008. The AASB intends to meet up with its Consultative Group, of which the Institute is a member, on the morning of 21 May.
The other significant agenda items for the May meeting include:
- Government reporting – amendments to AASB 1049 and consideration of project plan and issues for GAAP/GPS entities
- Not-for-profit entities – consideration of the recent invitation to comment ITC 14 as well as the applicability of differential reporting
- Related parties – consideration of submissions on the Board’s recent exposure draft
- Superannuation – consideration of disclosure principles
- Interpretations
4. AASB lodges submissions on IFRIC Draft Interpretations
The AASB has lodged submissions on two IFRIC Draft Interpretations – D24 Customer Contributions (pdf) and D23 Distributions of Non-Cash Assets to Owners (pdf).
The submissions express significant disagreement with parts of each proposal and can be viewed in full on the AASB website.
5. AASB releases May e-newsletter ‘Transparency’
The AASB has released the most recent edition of its quarterly e-newsletter “Transparency”. The newsletter reports on the outcomes of the semi annual meeting of National Standard Setters, held for the first time in Australia in March as well as providing a brief update on the IASB Insurance Project, which is seeking to develop an IFRS to address the recognition, measurement and disclosure of all contracts that meet the definition of an insurance contract.
The newsletter also contains a summary of open EDs and meeting dates, and introduces some key staff.
6. IFRIC meeting agenda – 8-9 May 2008
The International Financial Reporting and Interpretations Committee (IFRIC) met in London on 8-9 May 2008. Issues discussed related to:
- D21 Real Estate Sales
- D22 Hedges of a Net Investment in a Foreign Operation Cover
- Exposure Draft IFRS 2 Share-Based Payment
- IFRIC 11 IFRS 2 Group Treasury Share Transactions
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
- IAS 19 Employee Benefits – Settlements
The latest IFRIC Update is not yet available.
Auditing & Assurance News | |
7. AUASB releases May e-newsletter ‘Independence’
The Auditing and Assurance Standards Board (AUASB) has released the most recent edition of its e-newsletter “Independence”. The newsletter reports on the recent release of guidance to improve audit quality for reporting on investment management services, and current developments relating to performance engagements as well as drafting of proposed requirements for auditing emissions.
The newsletter also contains a summary of open EDs and meeting dates, and introduces new Board members.
8. IAASB recruiting for a Technical Manager
The International Auditing and Assurance Standards Board (IAASB) is seeking a new Technical Manager to assist the Board in a range of duties that will include project research, preparation of agenda and attendance at IAASB meetings, and assistance with the development of implementation guidance to assist users of ISAs.
A full job description (pdf) is available for download and interested candidates should submit their resume by 20 June 2008.
9. ASIC completes its strategic review
ASIC has announced the completion of its strategic review, aimed at better preparing it for upcoming challenges over the next three to five years.
Some key changes ASIC will implement over the next four months include:
- the appointment of an External Advisory Panel to advise on market developments and potential systemic issues
- abolition of the directorates of ASIC and replacing them with stakeholder teams which will reduce two layers of management to one level
- increasing resources directed to supervising brokers and intermediaries, as well as operators of exchange-traded products and surveillance of those markets
- six main enforcement or deterrence teams that are tasked with specific responsibilities
The Federal Government has welcomed the outcomes of ASIC’s strategic review.
For more information, refer to the ASIC media release.
Professional & Ethics News | |
10. APESB meeting agenda – 12-13 May 2008
The Australian Professional and Ethical Standards Board (APESB) meeting agenda and papers for its 12–13 May meeting are now available from their website. Technical matters on the agenda include the following:
- Compilation of APES 110 Code of Ethics for Professional Accountants
- ED 01/08 Compilation of Financial Reports
- ED 0X/08 APES 310 Conformity with Auditing and Assurance Standards
- Risk Management
- ED 0X/08 Prospectus and Reports on Profit Forecasts
- ED 07/07 Business Valuation
- 0X/08 Forensic Accounting
- Trust Accounts
- Withdrawal of Miscellaneous Professional Statements
Classifying convertible notes
Q: Where will I find some guidance on the appropriate classification of convertible notes between debt and equity?
A: The relevant accounting standard is AASB 132 Financial statements: Presentation. The standard requires, in paragraph 28, that the holder of such a compound financial instrument evaluate the terms of the instrument in order to separate its liability and equity components for initial recognition. Paragraphs 29-32 of the standard and the illustrative examples attached to it provide additional guidance on this process.
Listed below are the notable upcoming open domestic and international accounting and assurance exposure drafts. Members are encouraged to prepare their own submission on each document and submit them to the Institute (techsubmissions@charteredaccountants.com.au) no later than one week before the closing date shown.
19 May 2008
AASB ED 162 ‘Proposed Amendments to Key Management Personnel Disclosures by Disclosing Entities’
30 May 2008
AUASB ED 2/08 ‘Proposed Standard on Review Engagements ASRE 2400 Reviews of Financial Reports Performed by an Assurance Practitioner Who is not the Auditor of the Entity (Replacement of AUS 902)’
AUASB ED 3/08 ‘Proposed Standard on Review Engagements ASRE 2405 Review of Historical Financial Information Other than a Financial Report (Replacement of AUS 902)’
AUASB ED 4/08 ‘Proposed Amendments to ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity’
16 June 2008
AASB ITC 15 ‘Request for Comment on IPSASB Exposure Draft ED 34 Social Benefits: Disclosure of Cash Transfers to Individuals or Households and IPSASB Consultation Paper Social Benefits: Issues in Recognition and Measurement’
This list does not represent a complete list of the exposure drafts on issue. For further exposure drafts, refer to our exposure drafts webpage.
Business Forum 2008
Throughout May and June in Melbourne, Sydney, Adelaide, Perth and Canberra.
What’s your strategy for the year ahead? Join industry leaders and your peers as vital topics are addressed, key technical updates explored, and new ideas and options examined.
Accounting for Income Tax Workshop
Throughout May and June in Brisbane, Melbourne, Sydney, Adelaide and Perth.
Prepared by Deloitte, this workshop will equip you with knowledge and tools to apply to your work place. Build on your understanding of accounting for income taxes (AASB 112) and identify your obligations in time for the June 2008 year-end.
Audit of Self Managed Superannuation Funds Workshop
Throughout May and June in Brisbane, Melbourne and Sydney.
Now that there are competency requirements for auditors of self managed super funds, don’t miss out on ensuring your audits are compliant with the regulatory requirements.
Please continue to help us to improve the newsletter by sharing your comments on articles featured in this newsletter, or any financial reporting and auditing issues and experiences that might be of interest to other members. Responses should be emailed to "Your Input" (techsubmissions@charteredaccountants.com.au) and may be published in future editions of ANT.
Accounting & Assurance News Today is an initiative of the Reporting and Assurance Team of the Institute of Chartered Accountants in Australia.
Disclaimer
This is an initiative of, and has been prepared by the Reporting and Assurance Team of the Institute of Chartered Accountants in Australia. While every effort has been made to ensure the accuracy of the information contained therein, neither the Institute nor its employees shall be liable on any grounds whatsoever in respect of decisions or actions taken as a result of using this publication. The information provided is a general guide only and should not be used, relied on or treated as a substitute for specific professional advice or referral to the relevant specific standard.
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