Discuss about the Financial Accounting for Financial Reporting.
Issue pertaining to new accounting standards and framework, exposure drafts or other declarations or explanations 119:
During the year 2016 June, the Australian reported a list of alterations which is mentioned below; In accordance with the Australian Accounting Standard Board 119; the discounted rate for employees benefits regarding the long-term obligations for the corporate bond rate. The board also declares that government bond rate will be put into use if the corporate bond rate is not available.
The director’s responsibilities at the time of reporting will also be reviewed. In addition to these changes has also been incorporated concerning Australian securities exchange governing the principles and recommendations.
A simplified procedure of equity in accounting has also been created at the time of transformations when such changes were incorporated in relation to the investments-equity methodology and joint venture.
Alterations have also taken place in relation to the derivatives and hedging [contingent put and options for call for debt instruments]
The Australian Accounting Standard during the year 2016 in relation to the benefit for pension scheme along with contribution pension scheme has also been reviewed.
Regulation and monitoring of financial reporting
The chartered Accountants of Australia and New Zealand has clearly stated that all the organizations must conduct an audit and prepare an audit report so that it can clearly explore the quality of the audit work performed. The Financial Reporting Council has open-handedly accepted the change and has welcomed the approach.
Changes reported for issues pertaining to accounting standard.
From the period of May 1 to 31 July 2016, there are numerous amounts of changes that have been reported in contrast to the issues, which are related to the accounting standard.
A proposal has been placed on July 8 2016 to resolve the issues, which is related to compensations. The compensation includes employee stock ownerships schemes. The accounting standard has also considered providing improved form of employees share payment.
It is noted that in the month of June during the year 2016 another update has been proposed by the accounting standard regarding the review of revenue from the contracts of customers.
Political influence or other potential developments
The investment standards have been reviewed under the Australian Accounting Standard Board where the collaboration amid AASB 10, 11, 12 and AASB 128 has been discovered. The revision was essential in defining the guidelines, which was related to control, power, rights and exposure.
Recognition and summarization of advancements and alterations in the financial reporting framework for the period June to August 2016, inclusive
Over the period, revision of accounting standard was significant in terms of “political’ aspects.
A standard has been revealed in many such jurisdictions where current alterations has illustrated that the Australian Accounting Standard has been actively involved with the international standard for setting up of a project.
The forum is of utmost importance concerning the International Accounting Standard Board. The initiatives lay down under the Chartered Accountants of Australia and New Zealand as because if they are to be looked upon as leaders in business and finance then it is of utmost vitality to positively influence the pre-requisite.
Chartered Accountant Australia: https://www.charteredaccountants.com.au/Industry-Topics/Ethical-and-professional-standards.aspx
Australian Reporting: https://www.charteredaccountants.com.au/Industry-Topics/Reporting/Publications-and-tools/Essential-guidance/Guides/Australian-reporting-essentials-for-the-June-2015-reporting-period