Financial reporting and accounting standards

Our PwC experts give you the latest insights into financial reporting and accounting standards changes


Guide for December 2023 reporting season

This document highlights the key areas that might impact companies for this December year-end reporting season. It summarises the areas of focus for ASIC, general hot topics in the market, accounting changes from standard setting and other regulatory changes. 



Our targets


New disclosures for supplier finance arrangements in 2024 

In recent years, there has been an increased use of supplier financing (or reverse factoring) arrangements (SFAs) which provide companies with solutions for managing working capital. As the use of these solutions expands, it has become increasingly important that investors have transparency over the effect on a company’s liabilities, cash flows and exposure to liquidity risk. 

Starting in 2024, IFRS® reporters will be required to provide additional disclosures about these arrangements to fulfil those investor needs.
Our In depth tells you what you need to know to account for supplier finance arrangements, and what information you need to start collecting to be ready for the new disclosure requirements.

 

Our targets

 

Financial reporting for entities participating in the voluntary carbon market

 

Many entities are voluntarily choosing to purchase carbon offsets or credits as a method of ‘offsetting’ or ‘reducing’ the net emissions from their everyday activities, such as emissions arising from manufacturing, cloud services, transportation and energy usage. Carbonoffsets or credits purchased by companies might be reported as an offset to those emissions, or used to support statements that a company’s products can be labelled as ‘carbon-neutral’. 

There are no accounting standards or IFRS interpretations that directly address the accounting for carbon offsets and related projects. In this In depth we address the key accounting considerations for the various counterparties that are participating in the voluntary carbon market.

There is also a podcast where Claire Howells and Gina Huang join Raihazah Shaikh to share their perspectives on the accounting for carbon offsets and related costs from the perspective of a purchaser and the perspective of a project developer.

Insurance

AASB 17 Insurance Contracts will replace AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts  for annual periods beginning on or after 1 January 2023. AASB 17 will fundamentally change the accounting for insurance contracts within the scope of the standard. It will require the use of consistent measurement models based on current assumptions at a more granular level. 

Read more

Our targets

Accounting impacts of rising inflation

In an environment of rising inflation, often accompanied by rising interest rates, the challenges that an entity faces can have a wide-reaching effect on the financial statements and need to be considered when applying many of the IFRS requirements. 

In our in depth we walk you through key areas of the IFRS requirements that could be most impacted by rising inflation and interest rates.

See this report for further details.

Climate change and sustainability reporting

Financial reporting impacts

Investors and regulators are increasingly focusing on the impact of climate change and broader environmental, social and governance (ESG) matters on the financial statements. Our dedicated Environmental, Social and Governance (ESG) in IFRS website has technical guidance specifically focused on the effect of ESG matters on the IFRS financial statements.

The latest edition of our Value Accounts Holdings publication further discusses how climate change could affect certain measurements and the related disclosures in the financial statements.

ESG reporting

Regulators and standard-setting bodies are responding to the stakeholder needs of credible and trusted environmental, social and governance (ESG) disclosures, and we are seeing rapid change in the ESG landscape with likely mandatory requirements in the near future. 

On 12 January 2024, the Australian Treasury released the Exposure Draft Treasury Laws Amendment Bill 2024: Climate-related financial disclosure (Exposure Draft legislation).  It builds off previous consultations focused on the Government’s objective to improve the transparency and comparability of information available to investors regarding Australian entities’ exposures to climate-related financial risks and opportunities as well as their plans and strategies in response to those exposures.

For further information about the status of the Australian proposals see our local ESG page. Information about the global developments (ISSB, EU, SEC) is on our dedicated Viewpoint ESG page.


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Paul Shepherd

Paul Shepherd

Partner, Assurance - Quality, PwC Australia

Tel: +61 2 8266 7104

Erin Craike

Erin Craike

Partner, Corporate Reporting Services, PwC Australia

Tel: +61 415 598 440

Margot Le Bars

Margot Le Bars

Partner, Accounting Consulting Services, PwC Australia

Tel: +61 3 8603 5371

Paul Brunner

Paul Brunner

Partner, Capital Markets and Corporate Reporting, PwC Australia

Tel: +61 2 8266 4664

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