Focus On Reporting – Issue 1/2023
Focus On Reporting, providing you with the latest insights in financial reporting
The team
Featured
International Tax Reform—Pillar Two Model Rules: Proposed amendments to AASB 112
The Pillar Two Model Rules propose significant changes to international tax rules. Accounting consequences could include the recognition of additional deferred taxes. In response, the AASB proposes a temporary exception from accounting for deferred taxes that may arise from these changes. This publication provides an overview.
Fair value measurement of non-financial assets by public sector NFPs
AASB 13 has been amended to provide guidance to public sector NFPs when measuring fair values of non-financial assets that are not held primarily for their ability to generate net cash inflows. The guidance covers issues including determining the highest and best use, assessing financial feasibility, using market selling prices of comparable assets and applying the cost approach. The amendments apply for annual reporting periods beginning on or after 1 January 2024.
International GAAP® 2023 – available free of charge
By setting IFRS in a relevant business context, International GAAP® 2023 provides insights on how complex practical issues should be resolved in the real world of financial reporting. Upholding the EY commitment to carbon neutrality, this has been published digitally and is available for all users free of charge.
New Australian Accounting pronouncements
Our publication highlights changes in accounting requirements to be applied for the first time for 31 December 2022 year-ends, and those that will be mandatory in future periods. “Quality Holdings Australia” provides illustrative disclosures for annual financial reporting.
AASB 17 is amended for Insurance contracts in the public sector
The AASB has made public-sector-entity-specific changes to AASB 17 that apply for annual reporting periods beginning on or after 1 July 2026. Main changes include the addition of public-sector-specific scope considerations, exemptions to the standard’s contract sub-grouping requirements, and a policy choice to measure remaining coverage liabilities applying the premium allocation approach.
Accounting for SPACs
Special purpose acquisition company (SPAC) structures, an alternative way of private companies going public, have recently become more popular. SPACs pose many complex financial reporting challenges, and stakeholders expect high-quality financial reporting which appropriately addresses those challenges. This publication discusses the key issues and approaches to address them.
