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Our Financial Reporting Centre provides you with the resources you need to prepare relevant, compliant and useful financial reports under Australian Accounting Standards (AAS) to satisfy the needs of your investors, regulators and other interested parties.

This centre will be regularly updated with timely insights on the impacts of changes in standards, laws and regulations and other economic developments that may impact your financial reports or financial reporting obligations.

We have collated these insights so that you can face the significant challenges of financial reporting, from the implementation of the complex requirements of standards to the associated judgments and estimates, with confidence. For more information an the application of International Financial Reporting Standards (IFRS®), please refer to the KPMG Global IFRS Institute.

Preparing your latest financial statements

Find all the latest information on the currently applicable Australian Accounting Standards and regulatory requirements to ensure you have all the information at hand as you prepare your financial reports. This includes useful tools to make the preparation of your financial reports as efficient as possible.

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Overview


As organisations continue to face the challenges of climate change, more emphasis is being placed on how organisations report to stakeholders on their exposures and the processes they have in place to manage climate change. Expectations on how these are reported in the annual report, including the financial report, are increasing.
Careful consideration will be required of how the risks and potential impacts of climate change are reflected in financial reports to ensure clear and meaningful disclosures.



Need more help managing your climate risk?


Overview


Coronavirus (COVID-19) and related increases in economic uncertainty and risk may have significant financial reporting implications for many organisations. These range from the carrying amount of assets, accounting for government assistance, broader business disruptions and even changes in regulatory requirements.
It is important to ensure you under understand the potential accounting and reporting implications for your organisation in the Australian environment and address these issues in a timely manner.




Overview


Accounting for financial instruments is a complex area governed by multiple standards. Whilst principally governed by AASB 9 Financial Instruments; AASB 132 Financial Instruments: Presentations, AASB 7 Financial Instruments: disclosures and in some instances AASB 139 Financial Instruments: Recognition and Measurement, the substance and contractual terms play an important part in the financial reporting of an organisation’s financial arrangements.


Accounting for financial instruments is a nuanced affair, whether it is dealing with the classification of funding as debt or equity, accounting for sales of financial assets, modification of debt arrangements, hedge accounting or impairment. As financial products continue to evolve, together with changes in economic conditions and regulations, the challenges faced in accounting for financial instruments continues.



Overview


The leases standard, AASB 16 Leases, requires organisations that are lessees to recognise the majority of leases on-balance sheet. Lessees are required to recognise a right-of-use asset and lease liability, providing more transparency about an organisation's lease commitments.


Organisations need to ensure they have robust systems in place to capture and manage their leasing data and judgements. In addition, organisations are faced with broad ranging challenges including managing the impacts on debt covenants and credit ratings as well as impairment testing and tax-effect accounting.




Overview

The revenue standard, AASB 15 Revenue from Contracts with Customers requires organisations to apply a five step model to recognise revenue and to provide enhanced disclosures that give insight into their revenue streams. Nuances in the standard and complex revenue transactions can be challenging for organisations to navigate through.
Not-for-profit entities face even greater challenges applying AASB 15 as they also apply AASB 1058 Income for Not-for-profits at the same time. Complexities exist for these organisations in determining which standard to apply (AASB 15 or AASB 1058) and how to apply a for-revenue standard to not-for-profit transactions.





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