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Welcome to EY in Balance, providing you with the latest insights in financial reporting.
ASIC has released an information sheet with helpful guidance to avoid issuers greenwashing sustainability-related financial products. It also released the financial reporting changes for AFS licensees, highlighting categories of entities now required to prepare Tier-1 financial statements.
An AASB staff article provides an overview of Australia’s approach to developing high-quality, transparent, reliable, and comparable sustainability-related financial reporting framework.
Throughout the life cycle of a SPAC transaction, there are many complex financial reporting issues. EY publication “Accounting for SPACs” discusses these accounting challenges.
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Developing sustainability-related financial reporting standards in Australia
The International Sustainability Standards Board (ISSB) has been established with a focus on developing a high-quality, transparent, reliable, and comparable sustainability-related financial reporting framework. This staff article provides an overview of the AASB’s approach.
How to avoid ‘greenwashing’ for superannuation and managed funds
ASIC’s information sheet helps issuers avoid “greenwashing” when offering or promoting sustainability-related financial products. ASIC warns about the need to use clear labels and well-defined sustainability terms.
Financial reporting changes for AFS licensees
Starting from 1 July 2021, AFS licensees must prepare general purpose financial reports like any other for-profit entity. Those with public accountability would do so with full disclosures rather than simplified disclosures. ASIC has identified classes of AFS licensees as having public accountability.
Accounting for SPACs
Acquisition by a special purpose acquisition company (SPAC) offers private companies a way to go public without a traditional initial public offering. Typical SPAC transactions create many accounting challenges such as identifying the accounting acquirer, and the accounting for share based payments and financial instruments. EY publication provides an overview.
Disclosures in SPFS of certain for-profit private sector entities
Certain for-profit private sector entities can prepare SPFS when financial statements under Australian accounting standards are required only by their constituting document or another document. Those entities must disclose the basis upon which such SPFS been prepared, and material accounting policies applied.
Post-implementation review of Group Accounting standards
The IASB concluded its post implementation review of IFRS 10, IFRS 11 and IFRS 12. The review identified no high or medium priority matters for future consideration. Low priority topics including investment entity subsidiaries, corporate wrappers and collaborative arrangements were identified to explore further.