In this edition, we remind entities with uncertain tax positions that for years commencing on or after 1 January 2019, the new Interpretation 23 requires you to calculate tax balances as if the tax authorities were going to perform a tax audit, and the tax authorities knew all the facts and circumstances about your tax position. For many entities, this is likely to result in greater tax provisions recognised at an earlier date.
We also provide a summary of issues to consider when preparing 30 June 2019 financial reports, including ASIC focus areas. In particular, we draw your attention to two of the ‘triple threat’ accounting standards, AASB 15 (revenue) and AASB 9 (financial instruments), including related disclosures, as well as other regulatory issues impacting these financial reports.
In our not-for-profit section we continue our focus on whether AASB 15 or AASB 1058 applies to income received, this month focussing on grants to conduct research and transfer research findings to a customer.
Lastly, we also continue to explore further aspects of the ‘triple threat’ accounting standards. This month we illustrate Step Four and how the transaction price (determined in Step Three) is allocated to performance obligations (identified in Step Two) when recognising revenue in accordance with AASB 15 Revenue from Contracts with Customers. We are also proud to launch our new, interactive eLearning modules for the ‘triple threat’ accounting standards.