What’s new for 31 December 2021 reporting?
The economic and environmental landscape and financial uncertainties continue to evolve. Stakeholders, including investors and regulators alike, are demanding high-quality, transparent and insightful disclosures on the key risks and opportunities facing companies, related strategies implemented, and the potential impacts on long-term prospects and financial performance.
The impact of COVID-19 on companies, specifically how these impacts have been addressed and disclosed in the financial report and operating and financial review is a key focus for stakeholders.
Working capital management, possibly due to COVID 19 pressure, and the use of supplier and inventory financing arrangements are becoming increasingly common.
Local and international standard setters also continue to be active, working on amendments to accounting standards and interpreting these standards through IFRIC agenda decisions that need to be applied in the preparation of financial statements.
This time we presented our regular 6-monthly webinar over a two part series.
Watch the webinars
In Part 1 we discuss:
- Focus areas of our regulators
- Practical insights on IFRIC’s agenda decision on accounting for cloud computing costs
- Accounting considerations for working capital management strategies including supplier, receivables and inventory financing
In Part 2 we discuss:
- New accounting standards effective for 31 December 2021
- IFRIC agenda decisions on current or non-current classification of liabilities, demand deposits with restrictions on use, and cash received via electronic funds transfers
- Accounting considerations for employee share purchases funded through share loans
Tips for 31 December 2021 financial reporting
Be aware of ASIC focus areas and consider whether they impact the preparation of financial statements
Pay close attention to the terms and conditions in your cloud computing contracts when performing assessment of IFRIC decision
IFRIC made tentative decisions on demand deposits with restrictions, and cash received via EFTs, monitor the upcoming IFRIC meetings to see if these decisions are finalised and will need to be adopted at 31 December 2021
Carefully consider the accounting implications associated with working capital management activities
Employee share purchases funded through limited recourse loans are often accounted for as share options, with no recognition of a share sale or loan receivable
A new exposure draft for classification of liabilities as current or non-current is expected, disclosures of the impact of the current amendment are required in the notes to the financial statements if material