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- 2010
- August 2010
August 2010
To contact the Moore Stephens Technical Accounting Services team call Rob Mackay, Gihan Fernando or Lisa Panetta on (03) 8635 1800 or email:
Rob Mackay
rmackay@moorestephens.com.au
Gihan Fernando
gfernando@moorestephens.com.au
Lisa Panetta
lpanetta@moorestephens.com.au
ASIC Class Order 10/654
- By Rob Mackay
- Published 1/09/2010
- August 2010
- Unrated
On 29 July 2010 the Australian Securities and
Investments Commission (“ASIC”) issued Class Order CO 10/654 “Inclusion
of parent entity financial statements in financial reports”.
With the recent amendments made to Chapter 2M of the Corporations Act, the revised legislation prevented entities presenting consolidated financial statements from including parent entity financial statements in their financial report.
The class order overcomes this unintended consequence allowing entities to include parent and consolidated entity financial statements in their financial report.
Some entities may therefore elect not to take advantage of the financial reporting reform that allows entities to omit parent entity financial statements.
With the recent amendments made to Chapter 2M of the Corporations Act, the revised legislation prevented entities presenting consolidated financial statements from including parent entity financial statements in their financial report.
The class order overcomes this unintended consequence allowing entities to include parent and consolidated entity financial statements in their financial report.
Some entities may therefore elect not to take advantage of the financial reporting reform that allows entities to omit parent entity financial statements.
Resignation of Auditor – Small Public Company Limited by Guarantee
- By Rob Mackay
- Published 1/09/2010
- August 2010
- Unrated
As
a result of the recent Corporations Act reforms, small public companies
limited by guarantee are generally no longer required by the
Corporations Act to have an annual audit since they have been exempted
from financial reporting obligations.
A small public company limited by guarantee is one which has annual revenue (consolidated where applicable) of less than $250,000 and which does not have deductible gift recipient status.
Before taking advantage of this financial reporting relief, these entities should check to see whether a financial report and/or audit continue to be applicable pursuant to the entity’s constitution or other contractual provisions with third parties that maybe in place, such as borrowing provisions.
A small public company limited by guarantee is one which has annual revenue (consolidated where applicable) of less than $250,000 and which does not have deductible gift recipient status.
Before taking advantage of this financial reporting relief, these entities should check to see whether a financial report and/or audit continue to be applicable pursuant to the entity’s constitution or other contractual provisions with third parties that maybe in place, such as borrowing provisions.
NSW Inc Associations – Legislation updated
- By Rob Mackay
- Published 1/09/2010
- August 2010
- Unrated
The New South Wales Associations Incorporation Act 2009 (the Act) and
Associations Incorporation Regulation 2010 commenced from 1 July 2010,
and the associated reforms are expected to assist more than 35,000
associations incorporated in New South Wales to operate more effectively
and to make it easier for them to manage their affairs. It is not
expected that the day–to–day procedures and operations of associations
will be directly impacted. The key financial reporting changes introduce
a tiered financial reporting framework.
June 2010 disclosures – Application of future standards
- By Rob Mackay
- Published 1/09/2010
- August 2010
- Unrated
AASB 108: ‘Accounting Policies, Changes in Accounting Estimates and
errors applies to financial statements required to be prepared in
accordance with the Corporations Act as well as financial statements
prepared as general purpose financial reports.
Paragraph 30 of the standard requires disclosure of Australian accounting standards that have been issued but which are not yet effective as well as known, or reasonably estimable information, relevant to assessing the possible impact that application of the new standard will have on the entity’s financial report in the period of initial application. Some suggested disclosures are available for consideration at paragraph 31 of AASB 108 which may assist with an entity’s compliance.
Paragraph 30 of the standard requires disclosure of Australian accounting standards that have been issued but which are not yet effective as well as known, or reasonably estimable information, relevant to assessing the possible impact that application of the new standard will have on the entity’s financial report in the period of initial application. Some suggested disclosures are available for consideration at paragraph 31 of AASB 108 which may assist with an entity’s compliance.