The Australian Accounting Standards Board has recently released some significant amendments to accounting standards. This alert covers a summary of these amendments that are relevant for most Victorian public sector entities, their likely impact and recommended actions that preparers and auditors can undertake to ensure smooth implementation of these amendments. The alert also acts as a reminder of key accounting and other developments relevant to your 2022–23 financial statements and provides an update on the AASB’s post-implementation reviews.
Fair value measurement—proposed guidance for not-for-profit public sector entities (2022:2, 7 April)
Not-for-profit public sector entities have faced significant challenges applying the requirements of AASB 13 Fair Value Measurement to non-financial physical assets because of their unique nature, which results in divergent practice. This tech alert article discusses the Australian Accounting Standards Board's recent Exposure Draft ED 320 Fair Value Measurement of Non-Financial Assets of Not-for-Profit Public Sector Entities, which provides guidance to help the sector implement and consistently apply the requirements. The article also discusses the likely impact of the exposure draft on the public sector and actions that public sector entities can take to start preparing for its future implementation.
Not-for-profit entities have faced significant challenges applying the new income recognition requirements in AASB 1058 Income of Not-for-Profit Entities (AASB 1058) and AASB 15 Revenue from Contracts with Customers (AASB 15). This tech alert article discusses the Australian Accounting Standards Board's proposed amendments to AASB 15 and AASB 1058, their likely impact on the public sector and actions that public sector entities can take to prepare for the June 2022 reporting cycle.