Each month, this section highlights the latest developments in:
Previous months developments can be accessed through the archive.
Survey supports IFRS for SMEs
The introduction of International Financial Reporting Standards (IFRS) for small and medium-sized entities (SMEs) is supported by the majority of CPAs working in public practice and SMEs, according to research commissioned by CPA Australia.
A survey of CPA Australia members working in public practice and SMEs in Australia, Hong Kong, Malaysia and Singapore, was the basis for the research report, CPA Australia-CGFRC survey on accounting for small and medium entities.
The research was conducted by the Corporate Governance and Financial Reporting Centre, National University of Singapore to investigate views on the introduction of IFRS for SMEs as proposed by the International Accounting Standards Board (IASB).
This article appeared in CPA Update on 22 August.
Key decisions at recent AASB meeting
Two new interpretations Interpretation 13 and Interpretation 14 were adopted at the Australian Accounting Standards Board (AASB) meeting held on 1 and 2 August 2007.
Other matters included the invitation to comment on the International Financial Reporting Interpretations Committee Draft interpretation D21 and Interpretation D22, and petroleum rent resource tax.
This article appeared in CPA Update on 15 August.
Employee benefits discount rate
Members and others who are applying AASB 119 Employee benefits, paragraph 78, have asked the Australian Accounting Standards Board (AASB) to clarify whether Australia has a deep market for high quality corporate bonds.
Distribution of annual reports
Entities with financial years ending 30 June 2007 can now distribute their annual reports via their website.
Enlarging the IFRIC
The trustees of the International Accounting Standards Committee (IASC) Foundation are proposing to increase the size of the International Financial Reporting Interpretations Committee (IFRIC) from 12 to 14 voting members.
International convergence of accounting standards for Japan and India
An agreement to accelerate convergence between Japanese GAAP and International Financial Reporting Standards, was announced on 8 August 2007 by Ikuo Nishikawa, Chairman of the Accounting Standards Board of Japan and Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB).
Also, the Council of the Institute of Chartered Accountants in India has decided to fully converge with the IFRSs issued by the IASB for the accounting periods commencing on or after 1 April 2011.
The journal of the IASB and the IASC Foundation
The International Accounting Standards Board (IASB) and the International Accounting Standards Committee Foundations journal Insight for Quarter 3, 2007 is now available on the IASB website.
Included in the journal is the IASB work plans projected timetable as at 30 June 2007, news updates and technical developments.
Some proprietary companies may be publicly accountable
The Australian Accounting Standards Board (AASB) is proposing to introduce differential reporting based on the International Accounting Standards Board (IASB)s definition of public accountability. For Australia, this definition will be supplemented by quantitative thresholds.
The AASB has sought comments from constituents to ITC 12 Request for comment on a proposed revised differential reporting regime for Australia and IASB exposure draft of a proposed IFRS for small and medium-sized entities (ITC 12) and will prepare its submission to the IASB.
APESB meeting August 2007
The Accounting and Professional Ethical Standards Board (APESB) held its recent meeting on the 14 August 2007. The key decisions from the meeting include redrafting of exposure draft ED 01/07 Taxation services, and consideration of a draft revision of the current standard on compilation of financial reports.
Have your say on proposed changes to international audit standards
Members are encouraged to comment on the two exposure drafts (EDs) on the overall objective of the audit and auditors and audit evidence, issued by the International Auditing and Assurance Standards Board (IAASB).
ISA 200 (revised and redrafted) Overall objective of the independent auditor, and the conduct of an audit in accordance with international standards on auditing and ISA 500 (redrafted) Considering the relevance and reliability of audit evidence have been redrafted following the new clarity drafting conventions.
Outcomes of recent AUASB meeting July
The Auditing and Assurance Standards Board (AUASB) held a meeting on Thursday 30 Friday 31 July. Outcomes of the meeting include consideration of a revised draft of GS 003 Audit requirements for Australian financial services licensees under the Corporations Act 2001 (revision of AGS 1068) and comment on the AUASBs discussion paper, Audits of small and medium sized entities.
Reminder on audits of SMSFs
Any audits of self managed superannuation funds undertaken for the purposes of the Superannuation Industry (Supervision) Act (1993) must be conducted in accordance with Australian auditing standards.
The AUASB has revised and reissued 35 new auditing standards which are applicable to financial period commencing on or after 1 July 2006.
Australian auditing standards now have force of law, reminds AUASB
Auditors are reminded that the new Australian auditing standards apply for reporting periods starting 1 July 2006 or later.
The Auditing and Assurance Standards Board (AUASB) also reminded auditors that auditing standards have the force of law for statutory audits and reviews conducted under the Corporations Act (2001).
Additionally, the auditing standards are to be applied to all other financial report audits in accordance with APES 410 Conformity with auditing and assurance standards by auditors who are members of the professional accounting bodies in Australia.
This article appeared in CPA Update on 22 August.
Revised corporate governance principles released
The ASX Corporate Governance Council has released its revised Corporate governance principles and recommendations, which will be effective from the first financial year commencing on or after 1 January 2008.
This article appeared in CPA Update on 8 August.
There are no corporate social responsibility articles this month
Past pages of Latest developments can be accessed on the website.
