As accounting issues emerge, we often see a significant impact on financial reporting. To ensure your financial statements and accounting policies meet new requirements, the below publications explain changes and action items in an approachable and actionable form – ensuring you are aware of your obligations, any areas of complexity and potential impacts.

Resources

July 2021

AASB 136

Identification of Cash Generating Units

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.

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July 2021

AASB 138

Accounting for Clouding Computing and SaaS

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.

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May 2021

Roadmap to IFRS

A practical guide to IFRS 1 and first-time adoption

Introduced in 2020, AASB 2020-2 brings together a formal roadmap for entities to transition from special purpose financial statements to general purpose financial statements.

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June 2021

AASB 2020-2

Transition from special to general purpose

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).

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AASB 138 – Accounting for Clouding Computing and SaaS

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.

Interpretation 23 Uncertainty over Income Tax Treatments

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.

AASB 120 & AASB 1058 – Accounting for COVID-19-Related Government Grants

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.

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

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.

AASB 9 Financial Instruments and Loan Restructuring

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.

Impairment of assets - the impact of AASB 16 Leases and COVID-19

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.

Model Financial Statements

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.

Transition from special to general purpose

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 136 – Identification of Cash Generating Units

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.

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