A timely reminder that three major accounting standards are being introduced soon, which may have a significant impact for companies, particularly in the areas of:
- reporting of revenue
- values of financial instruments
- loan loss provisions
- the impact of lease arrangements.
The reporting standards affected, which need to be implemented from January 1st, 2018 are:
- AASB 9 Financial Instruments
- AASB 15 Revenue from Contracts with Customers.
The implementation of the third standard, AASB 16 Leases, applies from January 1st, 2019.
“All of these standards require some pre-planning to be implemented correctly for comparison requirements” advises Carmen Ridley, AASB Board Member. “It’s a little scary that not many companies have done much planning at all for these standards and set up adequate capture of relevant information for effective reporting.”
As ASIC Commissioner, John Price stated, “We remind directors and management of the importance of planning for the new standards and informing investors and other financial report users of the impact on reported results”. ASIC provided further notes which can be located here.
Carmen Ridley regularly updates a document for CaseWare Australia & New Zealand customers, available via our FAQ system entitled “Standards Issued Not Yet Effective”. You can download a copy at this link .
- CaseWare September Press Release – Audit & Fraud Software - 17 September 2018
- The 2018 CAANZ Audit Conference – Panel Discussion - 6 May 2018
- CaseWare Australia & New Zealand launches CaseWare Cloud Analytics™ and tackles Big Data - 7 December 2017