There have been some significant changes to the June 2010 edition of XYZ Model Financial Accounts, based on changes to legislation, accounting standards and other pronouncements. As a result, subscribers can expect to see the following changes and guidance which will be mandatory at 30 June 2010.

Changes arising from AASB 101:
  • Terminology changes throughout all models prepared in compliance with AASB 101 Presentation of Financial Statements. Changes include:
    • Balance Sheet becoming Statement of Financial Position;
    • Income Statement becoming Statement of Comprehensive Income;
    • Cash Flow Statement becoming Statement of Cash Flows;
    • Financial Report becoming Financial Statements; and
    • Asset Revaluation Reserve becoming Revaluation Surpluses.
  • Entities are no longer able to present a Statement of Recognised Income and Expenditure; the Statement of Changes in Equity is mandatory. All models previously disclosing a Statement of Recognised Income and Expenditure have been updated accordingly.
  • Entities are no longer able to disclose dividends and distributions paid on the face of the Statement of Comprehensive Income; they must be shown in the Statement of Changes in Equity or in the notes to the financial statements. All models where dividends or distributions were paid have been updated accordingly.
  • Where there has been a retrospective change in accounting policy, a retrospective restatement of items in an entity’s financial statements, or when an entity reclassifies items in its financial statements in the current year, the entity is now required to disclose a third statement of financial position at the beginning of the earliest comparative period. Chapters 9, 10, 13 and 15 have been updated to illustrate these disclosure requirements.
Changes arising from AASB 3
  • The revision of AASB 3 requires many new and revised disclosures. Chapter 10 reflects the required disclosures where a business combination occurred during the reporting period and Chapters 9 and 13 reflect the disclosures required where a business combination occurred subsequent to the end of the reporting period.
Changes arising from AASB 8
  • Models containing listed entities (Chapters 10 and 12) have been updated to illustrate the disclosures required by the ‘management approach’ to segment reporting included in AASB 8.
  • The segment reporting disclosures have been removed from all other models.
Other changes
  • The reporting checklists have been updated to include current and future pronouncements adopted by the AASB in the period to 30 June 2010.
  • Additional note disclosures and authors’ notes arising from new requirements introduced to various Australian Accounting Standards have been included.
  • A compilation report has been included in the XYZ Defined Contribution Superannuation Fund model in Chapter 16.
  • Chapter 18 - Stapled Securities has been updated to reflect the accounting treatment of stapled arrangements in light of the revised AASB 3 and the superseding of Interpretations 1013 and 1002.
  • Chapter 15 has been updated to illustrate the classification and disclosure changes introduced into AASB 132. Pursuant to these changes entities are now permitted to classify certain puttable financial instruments and other instruments which impose an obligation on the entity to deliver to another party a pro-rata share of the net assets of the entity only on liquidation as equity, rather than liabilities.
  • The financial instruments note included in all general purpose models has been updated to reflect the revised “fair value hierarchy” and financial risk management information required by the revised AASB 7.
  • The recent developments section contains important information in relation to proposed changes to the Corporations Act 2001, as a result of the Corporations Amendment (Corporate Reporting Reform) Bill 2010. At the time of printing these amendments had not been passed in parliament, however it was still likely that they would be, and that the changes would be applicable to 30 June 2010 year ends. The recent development section explains the impact of the potential changes.
  • The recent developments section also contains information regarding the AASBs Differential Reporting Project incorporating the Reduced Disclosure Regime which is expected to be available to entities for adoption by 30 June 2010.