Financial reporting 2022: Contemporary issues

Exposure drafts on:

  • Fair value measurement in the public sector

For many entities in the public sector, fair value measurement of infrastructure, property, plant and equipment involves significant effort at each reporting date. The AASB established a project advisory panel a number of years ago to work with the board in identifying the specific issues faced by the sector in relation to fair value.

ED 320 Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities has been released for comment until 30 June 2022.

This exposure draft provides authoritative implementation guidance for the NFP Public Sector on the following matters:

  • Market participant assumptions: proposes that an entity should use its own assumptions as a starting point and adjust if there is reasonable information that indicates that market participants would make different choices
  • Highest and best use: rebuttable presumption that the current use is the highest and best unless the appropriate level of management is committed at the measurement date to sell the asset or use for alternative use
  • Location: assume that the asset would be replaced in its existing location even if it is feasible to replace in a cheaper location.

Public sector entities, including local government, should review the requirements of ED 320 and provide comments to the AASB or your Bentleys contact if you have positive or negative views on the proposals.

  • Sustainability

The AASB has issued an exposure draft which includes the two exposure drafts released by the International Sustainability Standards Board. These exposure drafts provide guidance on disclosures as follows:

  • S1 General Requirements for Disclosure of Sustainability-related Financial Information
    • Disclose information that is material and gives insights into an entity’s sustainability-related risks and opportunities that affect enterprise value.
  • S2 Climate-related Disclosures
    • Disclosure of Scope 1,2 and 3 Greenhouse Gas emissions
    • Specific disclosures based on industry and sector.

We are pleased to discuss these exposure drafts and the likely impact with you. We encourage you to reach out to your Bentleys contact as these standards are expected to be issued by the end of the year.


We are starting to see a number of our clients who are participating in the cryptocurrency world by:

  • allowing payments in cryptocurrency
  • minting their own tokens
  • purchasing cryptocurrency for holding or trading purposes

We note that there is currently no explicit guidance on accounting for cryptocurrency and therefore the accounting policy used can be unclear and complex.

Entities need to consider the type of assets which are being held and the associated measurement basis, for example depending on the transaction the assets may be:

  • Inventory – held at cost (or fair value in certain circumstances)
  • Intangibles – held at cost or fair value if there is an active market
  • Financial assets – held at cost (rare but some cryptocurrency may meet this definition).

Entities should ensure that they understand the accounting outcome prior to undertaking any material transactions involving crypto assets.

Contact your local Bentleys audit and assurance expert for assistance with your financial reporting.
For resources to assist with your year-end tax planning, visit our EOFY portal.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

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