Assurance requirements are similarly divergent between entity type: The Taskforce agreed that addressing the complexity of financial reporting requirements would require long term action; however it remained important that the Taskforce consider how to streamline reporting requirements, such as: Are there any overlaps or duplication in the purpose or content of these financial reporting and assurance obligations?
Comments are requested by 30 November Where the appropriate level of assurance is a review who may perform such services. PricewaterhouseCoopers PwC also shared their observations relating to the mapping work being undertaken on reporting requirements, namely that there were divergent: It demonstrates that the conceptual underpinnings of financial reporting measurement can be improved at that this improvement is definitely needed.
What are the financial reporting and assurance requirements that are currently in place in Australia as they apply to the different types of entities that are required to have publicly available reports for example, companies, managed schemes, government departments and organisations, indigenous corporations, associations, unincorporated ventures, co-operatives, superannuation funds, trusts, charitable and not for profit organisations, trust funds etc.
Attachment B Background The Financial Report Taskforce FRTF was established in response to one of the recommendations made by the Managing Complexity Taskforce — that the FRC examine how the current financial reporting regime for the various types of reporting entities in Australia can be best explained and understood, and if needed, seek rationalisation of the regime for example, through further deregulation of who needs to report.
In addition to the possibility of providing formal comments on the paper, the author has set up a blog to encourage open discussion of the paper and financial reporting measurement issues generally: Differences in these thresholds and reporting requirements do not appear to be the result of different risk characteristics, or public interest in the accounts of entities.
Attachment A is the approved Terms of Reference.
Methodology In order to examine the existing financial reporting requirements of the various types of reporting entities in Australia, the task force agreed to map out the various reporting schemes applicable to entities. It was suggested that one way to deal with this is to establish a platform which they can consult, prior to imposing reporting requirements on entities.
Sometimes, reporting requirements are outlined in regulations, and it is not always easy to get an overview of the different requirements that apply to different tiers of entities required to report. While undertaking the mapping study, it was noted that the various regulatory regimes often imposed overlapping reporting requirements on entities, which may or may not be tailored for the entities they apply to.
Margot Le Bras, partner of PricewaterhouseCoopers and Masha Marchev, a senior accountant at PricewaterhouseCoopers, also attended meetings as required, to report on the mapping exercise. Members attended in the meeting in person and via teleconference. Legislative reporting requirements may be internally inconsistent: The paper envisages profit-oriented business entities as processes for transforming market input values into market output values.
Those that are reporting entities must provide general purpose financial reports, complying with the appropriate accounting standards. Key issues identified by the Financial Reporting Taskforce There is often no clear basis for the divergent reporting requirements, particularly where legislative requirements differ between states and different types of organisations: In the rare circumstances where some form of financial information is considered necessary to be publicly available, but GPFRs are considered too onerous, what the reporting requirements might be.
A wide range of views were expressed about the nature, extent and significance of the problem relating to the use of accounting standards. One particularly significant aspect of the current overarching reporting framework is that a very large range of entities is required to lodge financial reports on the public record.
If financial reports do not need to be lodged publicly then the financial reporting should be specific to the purpose for which the information is required.Measurement Issues in Financial Reporting. Katherine Schipper The Fuqua School of Business, Duke University, Durham, Standard-setting measurement issues and the relevance of research.
Barth. Accounting and Business Research. Volume 37, - Issue sup1. Published online: 28 Feb Home › Documents › Publications › Financial Reporting - Issues, recommendations and summary of observations Report by Financial Report Taskforce. This report represents the views of the FRTF as of 21 November [PDF KB] Key issues identified by the Financial Reporting Taskforce.
The common wisdom about financial reporting very often assumes certain characteristics for accounting numbers. In particular, accounting numbers are seen as ‘measures’ of the financial performance and of the financial situation of a company.
Given that the concept of ‘measure’ in other. Measurement is one of the most important issues in financial accounting; however, it is also one of the least developed areas of all accounting theory in terms of the degree of guidance provided to preparers and users of financial statements.
The approach proposed in the paper would have major implications for financial reporting measurement and the paper endeavours to identify and address the most fundamental of these implications. Ultimately, the paper is intended as input to the IASB/FASB Conceptual Framework project (Phase C – Measurement).
Download Financial instruments - recognition and measurement: FASB issues amendments What happened? On February 28, the FASB issued six amendments 1 to guidance introduced by ASUFinancial Instruments - Overall (Subtopic ) Recognition and Measurement of Financial Assets and Financial Liabilities (ASU .Download