AASB issues Sustainability Exposure Drafts
The AASB has issued ED 321 Request for Comment on [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and [Draft] IFRS S2 Climate-related Disclosures, which is based on the ISSB’s proposals.
The AASB is seeking feedback on the appropriateness of the proposals in an Australian context and which entities would be required to apply sustainability disclosure standards.
Comments to the AASB close on 15 July 2022.
AASB proposals on measuring fair value for NFP entities
ED 320 proposes to add guidance to assist NFP public sector entities assess the fair value of non-financial assets held primarily for their service potential, including:
• the market participant assumptions to use in measuring the asset’s fair value;
• the asset’s highest and best use; and
• the application of the cost approach if used to measure the asset’s fair value.
It also asks whether that guidance should be applicable to NFP private sector entities.
AASB Action Alert - April 2022
A summary of the AASB’s meeting held on 7 April has been issued. Key topics discussed include:
- The finalisation of narrow-scope amendments to Income of Not-for-profit Entities (amendments to AASB 1058 and Right-of-Use Assets arising under Concessionary Leases);
- Development of the Not-for-Profit Private Sector Financial Reporting Framework; and
- The AASB’s sustainability reporting project.
ACNC issues guidance on reporting KMP remuneration
Large charities preparing Special Purpose Financial Statements will need to report total Key Management Personnel (KMP) remuneration in their 2022 annual financial report. The ACNC has issued guidance to assist affected charities apply this requirement.
You can also read our article describing this and other changes affecting charities’ financial reporting requirements here.
Corporate Collective Investment Vehicle (CCIV) regime established
A CCIV is a new type of a company limited by shares that will operate as an alternative to the trust-based structure of managed funds.
Many features of existing Managed Investment Schemes are incorporated into the CCIV framework, including the flow-through tax treatment for investors and the ability of investors to redeem their shares at the member’s option.
The framework for CCIV’s is contained in a new Chapter 8B to the Corporations Act 2001 and takes effect on 1 July 2022. Consequential amendments are also made to other legislation to facilitate CCIVs, including the Income Tax Assessment Act 1997.
ASIC allows repeal of COVID-19 temporary relief for financial advice
The temporary relief in ASIC Corporations (COVID-19 — Advice-related Relief) Instrument 2021/268 automatically repealed on 15 April 2022.
The Instrument had provided the following forms of relief, introduced as a result of the COVID-19 pandemic:
- ‘Situations in which Statement of Advice is not required’ relief. This relief allowed financial advisers to provide a record of advice, rather than a statement of advice, to existing clients requiring financial advice.
- ‘Urgent Advice’ relief. This relief allowed financial advisers additional time to give their clients a time-critical statement of advice.
ASX Listing Rule proposals
ASX released a consultation paper entitled Proposed enhancements to the ASX Listing Rules: Continually improving the reputation and integrity of the ASX market, proposing changes to a number of ASX Listing Rules dealing with:
• new accounting requirements for quarterly cash flow reports;
• automatic suspension from trading of a listed entity whose auditor’s report contains a disclaimer of opinion or adverse opinion;
• the issuance of securities by listed entities, including the rules relating to security purchase plans, pro rata issues and material placements;
• transactions by listed entities with persons in a position of influence; and
• other miscellaneous matters.
Submissions close on Friday 27 May 2022.
IFRIC Update - April 2022
A summary is available of the IFRS Interpretations Committee meeting held on 20 April 2022.
The Committee finalised its agenda decision on Principal versus Agent: Software Reseller IFRS 15. The Agenda Decision describes those factors relevant to the assessment of whether a party is acting as principal or agent in the supply of goods or services.
If the IASB does not object to the Agenda Decision, it will be published in May 2022.
IASB Board meeting – April 2022
The agenda and papers for the IASB’s Board meeting held on 25-28 April are available. Topics discussed included:
- Post-implementation review of IFRS 9;
- Classification of demand deposits with restrictions on use;
- Accounting for purchases of an additional ownership interest in an associate without a change in significant influence; and
- Consideration of the IASB’s Goodwill and Impairment project.
Revisions to the definition of Public Interest Entity (PIE)
The International Ethics Standards Board for Accountants (IESBA) released a revised definition of a PIE together with other revised provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards). The changes expand the categories of entities as PIEs and will become effective for periods beginning on or after 15 December 2024.
Consequential Australian amendments are expected in due course, which are likely to affect which Australian entities will be required to prepare Tier 1 general purpose financial reports and be subject to enhanced independence requirements.
Financial Reporting Update
Registrations are open for Nexia’s 2022 Financial Reporting Update webinar on Thursday, 5 May 2022 at 11:00am - 12:00pm AEST.
Join our experts as they explore the key financial reporting and regulatory changes for 30 June 2022.
If you can’t make it to the event, register anyway and we’ll send you a link to the recording and materials after the event.
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If you would like to discuss further any of the information provided in these updates and how it may impact you, please contact your Nexia Advisor.