Guides and thought leadership

This checklist summarises all detailed remuneration disclosure requirements of the  Corps Act section 300A and Corps Regulations reg 2M.3.03.

The requirements apply to listed companies (i.e. it does not apply to listed entities that are not companies).

Comparatives are not required, except where specifically indicated in this checklist (i.e. for Regulation 2M.3.03(1) Items 6-9 and 11).

• Remuneration Report Disclosure Checklist

Effective immediately – for most entities 30 June 2021 – the IFRIC Agenda Decision on cloud computing has impacted many entities, requiring in-depth consideration as to whether assets and expenses previously recognised were appropriately categorised. In providing additional clarity, IFRIC has rendered many accounting policies unacceptable – in this guide, we walk through the process of understanding what is and isn’t allowed, and how to arrive at the right answer.

• Configuration or customisation costs in a cloud computing arrangement

Effective for financial years beginning on or after 1 January 2019, Interpretation 23 Uncertainty Over Income Tax Treatments requires that companies consider the potential for adverse tax determinations being made by taxing authorities while under a hypothetical audit. Many entities will not experience a significant impact on financial reporting as a result of the interpretation becoming effective, however certain entities, based on their structures and nature of operations may be more adversely impacted.

• Interpretation 23: Practical Application

A key element of the Commonwealth’s response to the COVID-19 pandemic has been the subsidisation of wages of employees for entities experiencing the most severe financial impacts, known as “JobKeeper”. A lesser known element is the business-focused “Cash Boost” regime, whereby eligible entities receive cash flow assistance through the BAS system. In these guides, we explain how the accounting standards apply and specific decisions and judgements that preparers of financial statements will be required to make in the process of presenting their results.

• AASB 120 & AASB 1058 - Cash Boost
• Accounting for JobKeeper

Whether arising from COVID-19 or from other causes, lease modifications introduce complexity into accounting from both a lessee and lessor perspective. This guide addresses lease modification accounting from both perspectives and incorporates the recently released AASB 2020-4 COVID-19-related Rent Concessions, including practical examples and a discussion of the various decisions and judgements that need to be made.

• Application of Lease Modification Accounting for COVID-19-Related Lease Concessions

Debt restructuring is an area that most entities do not encounter on a regular basis – or may be a topic not encountered after the adoption of AASB 9 Financial Instruments and Loan Restructuring. This guide, and its included examples, seeks to demystify some of the accounting around this highly technical area.

• AASB 9 - Financial Instruments and Loan restructuring 

After adopting AASB 16 Leases for the first time, entities must now undertake impairment analyses in a new environment – historic practice no longer complies with accounting standards. Entities also face specific challenges in preparing impairment analyses in the context of COVID-19 and the resulting significant increases in forecasting uncertainty. These documents explain in practical terms, with examples, how to adapt your existing forecast process to the current reporting environment.

• AASB 136 Impairment & COVID-19
• Application of Lease Modification Accounting for COVID-19-Related Lease Concessions
• The impact of AASB 16 on impairment

• Impact of AASB 16 Leases on residential aged care accommodation arrangements 
• Impact of AASB 16 Leases on retirement village accommodation arrangements 

Grant Thornton prepares and provides IFRS-compliant model financial statements that meet the Tier-1 requirements of the Australian Accounting Standards, as issued by the Australian Accounting Standards Board, when applied in the context of the Grant Thornton Australia’s Australian-Specific Disclosures Companion.

• Example financial statements

AASB 2020 2 Amendments to Australian Accounting Standards Removal of Special Purpose Financial Statements for Certain For Profit Private Sector Entities (AASB 2020 2 ) requires that certain Australian for profit entities that have historically prepared special purpose financial statements (SPFS) prepare general purpose financial statements (GPFS) for reporting periods commencing on or after 1 July 2021. Upon transition, entities required by AASB 2020 2 to prepare GPFS must restate their comparative periods unless the standard is early adopted.

• AASB  2020-2: Transitioning from SPFS to GPFS
• The Road to IFRS

There’s been much confusion around testing assets for impairment when required by AASB 136 Impairment of Assets, particularly when identifying a cash-generating unit (CGU) in which an asset should be allocated and impairment tested. CGUs play a critical role in applying AASB 136 and, for entities that are required to complete testing for impairment, are a critical part of any assessment prepared. This guide dives into complexities around assessments completed incorrectly in a historical setting and areas of scrutiny that require judgments to be revisited and/or more fully documented.

• AASB 136 – Identification of Cash Generating Units