IFRS & Corporate Reporting

Every business faces a financial reporting or accounting issue at some point when preparing their financial reports. In these situations, expert advice underpinned by an in-depth understanding of International Financial Reporting Standards (IFRS) and corporate reporting is crucial.

As a member of the Global Public Policy Committee and via our extensive global network, BDO is at the forefront of IFRS reporting and implementation. Our service offering in each technical area includes:

Audit ready services
BDO Lease Management Services (i.e. outsourcing of lease accounting)
BDO Lead SaaS, our AASB 16 technology solution
Specialist technical advice
Implementation services of new accounting standards
Forensic / expert witness services in application of accounting standards
Training, including webinars and e-learning
Preparation of accounting manuals and policies
Preparation of financial statements.

New leases standard, AASB 16 Leases

For lessees the new standard does away with the current operating/finance lease distinction, requiring lessees to recognise all but the lowest value leases on the balance sheet as a right of use asset and a corresponding lease liability. The operating lease rental expense will be replaced by an amortisation charge for the right of use asset and a finance cost.

Effective Date - Mandatory for periods beginning on or after 1 January 2019. For most Australian companies the first reporting period is the year ending 30 June 2020.

Not-for-profit entities – AASB 1058

AASB 1058, which applies for the first-time to annual periods beginning on or after 1 January 2019, clarifies and simplifies the income recognition requirements that apply to not-for-profit (NFP) entities, in conjunction with AASB 15 Revenue from Contracts with Customers. These two standards supersede all the income recognition requirements relating to private sector NFP entities, and the majority of income recognition requirements relating to public sector NFP entities, previously in AASB 1004 Contributions. In addition to the new revenue and income recognition requirements, not-for-profit entities also face challenges applying the new leases standard, AASB 16 Leases to annual periods beginning on or after 1 January 2019. We also expect changes to the financial reporting requirements and frameworks for not-for-profit entities.

Impacts of the Coronavirus Outbreak on financial reporting

The coronavirus poses a serious public health threat and the severity of impacts on global economies is changing daily. Actions taken by the Chinese and many other governments, including Australia, to isolate cities and quarantine people have resulted in significant disruption to business operations in these countries, and particularly in China, which is likely to affect entities which depend on supply chains through China, as well as other businesses that have a high dependency on China, including travel and tourism, manufacturing, construction and the retail sector, and brings significant financial reporting implications.

Read more Coronavirus

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