Developments and Changes In The Financial Reporting Environment

Question: Discuss about the Developments and Changes In The Financial Reporting Environment. Answer: International: Australian Accounting Standard Board (2016). The Australian Accounting Standard Board (AASB) is an agency of Australian Government, which has made some changes and developments in the financial reporting environment. The purpose behind this is providing the better facilities to Australians companies and economy. The Australian Accounting standard Board is continuously amending for preventing the issues in the companys financial account and for supporting the Australian Stock Exchange (ASX). In this regarding, it has amended in the share and payment policies of the listed companies in ASX. According to this, companies should classify share-based payment transaction with a net settlement feature for withholding tax obligations. The new terms and condition will apply on both cash-settled to equity-settled. AASB has also amended rules related to the recovering amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities. The changes will apply after the 1st January 2017. Along with this, the quarter meeting, the board also discussed the development and issues of the current projects. Chartered Accountants (2016). Australia and Korea have taken significant decisions regarding the joint project related to the improvement of the consistency of global accounting. In this, they have launched a new report on the differences common accounting terms in Australian and Korea. In this joint project, AASB and Korea Accounting standard board (KASB) analyzed that whether words such as likely, probable and certain keep same interpreted or differently in Australian and Korea. Australian Accounting Standard Board (2016). The International Accounting Standard Board has improved its policies and programs related to the companies which are coming in the Australian Stock Exchange. The AASB has also determined and changed its work programs related to meetings, conferences and other essential programs. The board has declared the amended standard will be affecting to start before 30 June. The board has developed accounting standard AASB 2016 -2, which amendments to act AASB 107 under the section 334 of the Corporations Act 2001. It will apply from 1 January 2017. After the application this, the shareholder and user of financial statement will be able to see the changes in the liabilities of the companies that are arising due to the operational activities of the company. Chartered Accountants (2016). Financial Reporting Council has done a meeting for existing projects to investigate the future of corporate reporting in the digital world. The title of this was Components of Digital Reporting. In this meeting, some components were discussed such as time period, profitability, the amount of investment and procedure. It will help to corporate to communicate regarding the financial reporting. Reference Australian Accounting Standard Board (2016). Amendments to Australian Accounting Standards. Retrieved from: https://www.aasb.gov.au/admin/file/content105/c9/AASB2016-2_03-16.pdf Australian Accounting Standard Board (2016). News. Retrieved from: https://www.aasb.gov.au/News/Australia-and-Korea-take-lead-role-in-improving-consistency-of-global-accounting?newsID=193297 Australian Accounting Standard Board (2016). News. Retrieved from: https://www.aasb.gov.au/News/Public-sector-specific-financial-instruments?newsID=193296 Chartered Accountants (2016). Leadership Advocacy. Retrieved from: https://www.charteredaccountants.com.au/Industry-Topics/Reporting/Current-issues/Convergence/News-and-updates/AASB-amends-share-based-payments-standard Chartered Accountants (2016). Leadership Advocacy. Retrieved from: https://www.charteredaccountants.com.au/Industry-Topics/Reporting/Current-issues/Financial-reporting-complexity/News-and-updates/The-future-of-digital-reporting.aspx