Accounting standards effective for 30 June 2019 year ends

This article provides a recap on the standards effective for 30 June 2019 year ends and what effect the new standards will have.

The June reporters will be subject to some of the new accounting standards which we have been discussing for many years – all entities will be complying with AASB 9 Financial Instruments and for-profit entities will be complying with AASB 15 Revenue from Contracts with Customers.

An advantage that the June reporters have is that they can have a look at what was released in the December reporting period to get an indication of the level of disclosures and changes required under these standards.

We encourage entities to review their listed competitor financial statements and use these as part of the toolkit to implement the standards. Be aware that most UK listed entities have a 31 December year end and therefore don’t forget to look on the London Stock Exchange website for similar entities since they comply with the International Standards which are identical to AASB 9 and AASB 15.

During the first period of adoption, there will be both transition (change in accounting policy disclosures) which vary depending on whether the entity has chosen to restate comparatives as well as ongoing disclosures for the relevant transactions and balances.

The complete list of standards which are effective for the first time for 30 June 2019 reporters is shown in the table below. Entities should carefully consider each standard to ensure that they have adopted the relevant requirements.

All entities

AASB 9 (and associated amending standards) Financial Instruments
AASB 2016 -5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions
AASB 2016 -6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts
AASB 2017 – 3 Amendments to Australian Accounting Standards – Clarifications to AASB 4

For Profit Entities only

AASB 15 (and associated amending standards) Revenue from Contracts with Customers
AASB 2017 – 1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014 – 2016 Cycle and Other Amendments [AASB 1, AASB 128, AASB 140]
Interpretation 22 Foreign Currency Transactions and Advance Consideration

Don’t forget that AASB 16 will be effective from 1 January 2019 as well as the new revenue standards for NFP entities.

If you have not completed your assessment of the impact of any of the standards above, then please speak to your Bentleys contact.

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