We provide clients with many professional and technical services. For a detailed description, please select the relevant service.
Great
News
Sep 29, 2023 / News
Beyond the Numbers - Edition 9
Welcome to Beyond The Numbers, our monthly newsletter which brings you a summary of the latest developments from local and international standard setters and regulators.
Click on one of the Newsletter sections below:
Review recommends abandoning the Modernising Business Registry (MBR) program
An independent review of the Australian government’s Modernising Business Registers program has identified technical difficulties and cost blow-outs with the project.
With costs ranging from approximately $1.1 billion to $2.2 billion, the review concluded that the MBR program should be stopped, as the economic benefits from the program do not justify the level of additional expenditure required. The Review recommended the return of registry functions from the ATO to a new division in ASIC.
The aim of the MBR program was to modernise Core Business Registers, including the Australian Business Register administered by the ATO and more than 30 registers administered by ASIC, as well as incorporate the Director ID regime into a single registry system.
AASB Action alert – September 2023
The Action Alert from the AASB meeting held in September 2023 has been released. Key decisions made relate to climate-related financial disclosures, financial reporting framework for the Not-for-Profit private sector, results of the post-implementation review of IFRS 9 (Impairment), and Tier 2 – International Tax Reform – Pillar 2 Models.
Regarding the financial reporting framework for the Not-for-Profit private sector, the AASB resolved to introduce proposals in the Tier 3 Exposure Draft. These proposals aim to address aspects such as business combinations and goodwill, other intangible assets, consolidation, investments in associates and joint ventures, and investment property.
Additionally, entities will have the option to apply either a Tier 1 or Tier 2 accounting policy for transactions or events not covered by the Tier 3 Standard. However, Tier 2 requirements shall be applied to biological assets, complex financial instruments, insurance contracts, exploration and evaluation of mineral resources, share-based payment arrangements, assets held for sale, obligations under a defined benefit plan, and accounting for a service concession arrangement.
Finally, in relation to Tier 2 – International Tax Reform – Pillar 2 Models, the Board voted to make Accounting Standard AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar 2 Model Rules: Tier 2 Disclosures. This Standard amends AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities to require a Tier 2 entity to disclose whether it applies the mandatory temporary exception to accounting for deferred taxes arising from the implementation of the Pillar 2 model rules and any current tax expense related to Pillar 2 income taxes.
The Standard applies to annual periods beginning on or after 1 January 2023 that end on or after 30 September 2023, with earlier application permitted.
ACNC | Public Benevolent Institutions
ACNC published its Commissioner’s Interpretation Statement on Public Benevolent Institutions to provide charities with a more extensive guidance on whether and how they qualify to be Public Benevolent Institutions (PBI).
PBI is a charity subtype that provides a gateway to charity tax benefits, including access to deductible gift recipient status.
To qualify as a PBI, a charitable entity must satisfy three key criteria: it must be public, benevolent, and organised as an institution. In this context, "public" denotes that the entity aligns with the definition of 'charity' as outlined in the Charities Act 2013 (Cth), and the recipients it seeks to assist constitute an appreciable section of the community.
Additionally, the charity's primary objective must be the relief of poverty, sickness, destitution, helplessness, suffering, misfortune, disability, or distress.
ASIC | New legislative instruments for financial resource requirements and platforms
ASIC issued two new legislative instruments relating to financial requirements of licensed custodians and responsible entities of registered schemes, investor-directed portfolio service (IDPS) operators and corporate directors of retail corporate collective investment vehicles (CCIVs). These new instruments remade, without significant changes, the previous class orders that are due to expire on 1 October 2023 and 1 October 2024.
These legislative instruments require licensees to prepare an approved cashflow projection over at least the next 12 months, including the assumptions used to prepare such. Furthermore, licensees are required to maintain a minimum net tangible asset balance at all times and submit audited financial statements as part of their regulatory requirements.
Read More >>
NSW Treasury | Paid parental leave enhancements from 1 October 2022 for Government Sector Finance (GSF) agencies
GSF agencies include councils established for various health professions under Part 5A of the Health Practitioner Regulation National Law (NSW), NSW health entities, public service agencies, state owned corporations, statutory bodies representing the Crown, and entities with money held in the Special Deposits Account, amongst others.
AASB 119 Employee Benefits requires entities to recognise an employee benefits provision for paid absences when the employees render service.
As per NSW Treasury, under the revised conditions, eligible employees will now be entitled to up to 24 months of paid parental leave provided they have completed 40 weeks of continuous service. Furthermore, both parents (previously limited to 1 parent) will now have access to 14 weeks of paid parental leave and may qualify for an additional 2 weeks of paid bonus parental leave under specific circumstances.
These enhancements shall be reflected in the GSF’s provision calculation as at 30 June 2023.
Read More >>
IFRIC Update – September 2023
The IFRS Interpretation Committee (IFRIC) held its meeting on 12 September 2023.
One of the concluded matters addressed the accounting treatment for payments made to sellers of business which are contingent on continued employment during handover periods. These encompass additional payments dependent on business performance and seller's post-acquisition employment for handover. IFRIC determined they should be treated as compensation for post-combination services, aligning with the January 2013 decision.
Read More >>
FASB-IASB Education Meeting – September 2023
The FASB-IASB Education Meeting is scheduled for 29 September 2023.
The agenda items include Performance Reporting. This matter covers further disaggregation of income statement expenses to have a better understanding of an entity’s performance, future cash flows, and comparison against the sector. This is alongside the requirements of IFRS X General Presentation and Disclosures that will replace IAS 1 Presentation of Financial Statements. The new Standard will introduce additional defined subtotals in the statement of profit or loss and strengthen the requirements for aggregating and disaggregating information.
Additionally, the meeting will address the accounting treatment of Sustainability-related Matters in the Financial Statements. This encompasses the assessment of both physical and virtual power purchase agreements as per IFRS 9 Financial Instruments, consideration of ESG-linked financial instruments, evaluation of environmental credit programs, and incorporation of climate-related risks into the financial statements.
For further details on additional topics slated for discussion, please refer to the IFRS website.
Read More >>
ASX compliance update
The latest edition from ASX contains the following updates and reminders for listed companies:
- Half yearly, preliminary final and change of balance date announcements: order of announcements and early release of announcements during reporting periods
- Allow enough time for ASX to review your draft notice of AGM
- Annual listing fees FY2024 reminder
- Security purchase plan waivers
- Reminder: Appendix 7A Timetables
- Emails circulating regarding membership or maintenance of an entity’s ISIN
- Upcoming deadlines for periodic reports.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.
