With the end of the financial year looming, the Australian Securities and Investments Commission (ASIC) is reminding everyone of the coming changes in financial reporting.
Like last year, ASIC reminds directors that they are responsible for the quality of their financial reporting.
In an official statement issued earlier this week, ASIC indicated the full-year reports must comply with the new accounting standards as it relates to revenue recognition and financial instrument values.
“New accounting standards can significantly affect results reported to the market by companies, require changes to systems and processes, and affect businesses,” ASIC Commissioner John Price said.
The regulator will be reviewing 200 of the full-year reports to ‘promote the quality of financial reporting’.
Financial reporting standards that might impact your organisation are:
AASB 9 Financial Instruments (applies from years commencing 1 January 2018);
AASB 15 Revenue from Contracts with Customers (applies from years commencing 1 January 2018);
AASB 16 Leases (applies from years commencing 1 January 2019);
AASB 17 Insurance Contracts (applies from years commencing 1 January 2021); and
Amendments to standards to apply the new definition and recognition criteria in the Conceptual Framework for Financial Reporting (applies from years commencing 1 January 2020).