IFRS (International Financial Reporting Standards) are developed by the International Accounting Standards Board (IASB), the independent, standard setting body of the IFRS foundation in London. The IFRS Foundation's mission is to develop IFRS standards that bring global transparency, accountability and efficiency to the financial markets.
In more than 150 countries worldwide, the application of IFRSs is either mandatory or permitted. In Australia, Australian equivalents to IFRSs (Australia Accounting Standards) have been mandatory for all reporting entities, including listed companies and financial institutions, since 1 January 2005.
Australian Accounting Standards, including Interpretations, are issued by the Australian Accounting Standards Board. They incorporate IFRSs (including Interpretations) issued by the IASB, with the addition of:
- paragraphs on the applicability of each Standard in the Australian environment;
- requirements specific to Australian entities (for example not-for-profit private or public sector entities); and
- additional disclosures that address domestic regulatory or other issues.
Currently, Australian Accounting Standards apply to reporting entities and financial statements that are, or held out to be, general purpose financial statements. This is referred to as the ‘reporting entity’ concept. There is a differential reporting framework for general purpose financial statements:
- Tier 1 applies all Australian Accounting Standards. This tier applies to for-profit entities that are publicly accountable, where compliance also ensures compliance with IFRS as issued by the IASB.
- Tier 2 (often known as ‘reduced disclosures regime’) retains the recognition and measurement requirements of Australian Accounting Standards, but with reduced disclosure requirements. For-profit entities that do not have public accountability may elect to apply this tier.
The Australian Accounting Standards Board has made significant changes to the reporting framework in Australia, that becomes mandatory for annual periods beginning 1 July 2021. More information on this change can be found below.
EY maintains a global IFRS network to ensure a consistent application of IFRS worldwide. We are represented in international as well as in Australian national bodies and can therefore contribute to informed discussions for improving financial reporting. In our Oceania IFRS Professional Practice team, we have specialists with extensive experience in IFRS application and sector expertise.
In addition to our globally recognised IFRS commentary "EY International GAAP®", IFRS Outlook, IFRS Developments, Applying IFRS and IFRS Core Tools, we provide insights to the community through our communications on current Australian developments.
Here you will find Australian illustrative financial statements.
December 2020 (and June 2021) year ends:
December 2019 (and June 2020) year ends:
- Good Group Australia
- Good Group Australia RDR
- Good Group Australia Simplified Disclosures (for early adoption - June 2020)
- Good Group Australia Interim (June 2019 and December 2019)
December 2018 (and June 2019) year ends:
- Applying IFRS – Accounting considerations of the coronavirus outbreak (Updated July 2020)
- Applying IFRS - Accounting for covid-19 related rent concessions (June 2020)
- IFRS Developments - IASB amends IFRS 16 for covid-19 related rent concessions (June 2020)
- Applying IFRS - Impact of coronavirus on APMs and disclosures (May 2020)
AASB 1058 Income for Not-for-Profit Entities was issued in December 2016 and is effective to Not-for-Profit entities for annual reporting periods beginning on or after 1 January 2019. AASB 1058 may change when Not-for-Profit entities recognise certain types of income. AASB 1004 Contributions was amended at the same time, and limits its scope to address issues specific to government entities and contributions by owners in a public sector entity context.
- Not-for-Profit financial reporting and tax update (June 2020)
- Not-for-Profit financial reporting and tax update (January 2020)
- Not-for-Profit financial reporting and tax update (August 2019)
- Not-For-Profit financial reporting and tax update (February 2019)
- New Income Recognition for Not-For-Profits (December 2016)
These publications offer practical and interpretative guidance relating to financial reporting in Australia. These include Australian specific matters as well as regulatory and legislative matters.
- Australian Service Concessions (May 2020)
- Grappling with Int. 23 Uncertainty over Income Tax (January 2020)
- Revenue: No impact? Now prove it (October 2018)
- Revenue: The data challenge (2018)
- Revenue: Time’s up (2018)
- ATO guidance on the provision of GPFS by SGEs (October 2017)
- Service concession arrangements by public sector grantors (July 2017)
The Australian Accounting Standards Board has made significant changes to Australia's reporting framework for for-profit private entities. These changes will amend the differential reporting framework, in the first instance, for for-profit entities. A myriad of changes have arrived – somewhat driven by the IASB amendments to the Conceptual Framework. Changes are also being considered for public sector and not-for-profit entities in Australia.
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