AASB 17 fundamentally changes the accounting for entities that issue insurance contracts, both the income statement and balance sheet will change and there are a number of decisions and choices to be made when implementing the new standard.
The IASB has undertaken a two-phase project to consider what, if any, reliefs to give from the effects of IBOR reform. The Phase 1 amendments, issued in September 2019, provided temporary reliefs from applying specific hedge accounting requirements to relationships affected by uncertainties arising as a result of IBOR reform (‘the Phase 1 reliefs’). The Phase 2 amendments that were issued on 27 August 2020 address issues that arise from the implementation of the reforms, including the replacement of one benchmark with an alternative one.
ASIC has announced its areas of focus for June 2020 financial reports. Acknowledging the adverse impact of COVID-19 on many companies, ASIC honed in on five areas that directors, preparers and auditors should pay particular attention to this reporting season.
The IASB has published an amendment to IFRS 16 that provides an optional practical expedient for lessees only which allows certain COVID rent concessions to be treated as variable lease payments rather than the more complex modification accounting. We expect the AASB to issue an equivalent amendment shortly.
While financial reporting might not be your highest priority today, we have included in this document some initial guidance on what to consider in regards to the coronavirus (COVID-19) pandemic to assist those who are currently finalising a financial report. This document includes the latest news from ASIC on December reporter AGMs, and what you need to consider before signing a 31 December year end report or if you are planning for year ends post 31 December. We will be issuing further detailed guidance, including frequently asked questions and examples, as they arise. We will also be preparing a high level guide for audit committees.
PwC keeps you up to date with the latest developments from the IASB and AASB with our Straight Away alerts (formerly IFRS in brief special edition). Our short, easy to read alerts explain the key points and potential impacts of new pronouncements.