• Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards
  • Type: Regulatory update
  • Date: 18/07/2014

Reporting Updates

Reporting Updates
Reporting Updates (formerly known as Flash Reports) outline changes occurring within the Australian financial reporting environment.

14RU-006 Special purpose financial statements – 30 June warning 

Directors of entities considered non-reporting entities, and who prepare special purpose financial statements should be aware research recently released by the AASB means more scrutiny by ASIC is likely. Moving to Tier 2 Reduced Disclosure Requirements may be beneficial.

Key insights

  • AASB Research Report No 1 (RR 1) Application of the Reporting Entity Concept and Lodgement of special purpose financial statements released by AASB.
  • Whilst the research doesn’t change the criteria for assessing whether an entity is a reporting entity, it confirms how challenging applying the concept is, requiring significant judgement by management, directors and auditors. It also highlights circumstances where preparing SPFSs may be questioned.