• Accounting News - May 2020

In this issue

In this edition, we discuss the hot topic of coronavirus, including the IASB’s accounting relief for lessees who receive rent concessions; ASIC’s recent extension of reporting deadlines by one month for listed and unlisted entities with 30 June 2020 reporting dates; how to account for ‘job keeper’ payments by eligible employers; and considerations relating to accounting for the impairment of non-financial assets, provisions and insurance proceeds.

Continuing our IFRS 16 series, we look at the different options for accounting for ROU assets and lease liabilities when transitioning to IFRS 16, as well as what to do with residual balances such as lease accruals and straight-line lease liabilities on transition date. We also explain how value-in-use impairment models will need to be adapted by lessees to cater for leasing transactions.

In our not-for-profit section, we consider four key focus areas that not-for-profit entities need to consider when preparing 30 June 2020 financial statements, including the ‘triple threat’ new standards dealing with income recognition (AASB 1058), revenue (AASB 15) and leases (AASB 16), as well as the impact of COVID-19 and the ‘job keeper’ Government stimulus payments. We also draw your attention to additional BDO resources on ‘job keeper’ stimulus payments for NFPs.

Lastly, we note that recent amendments to IAS 1 relating to the classification of liabilities as current or non-current are being deferred until 2023.

CORONAVIRUS UPDATE

NEW LEASES STANDARD – IFRS 16

NFPs

INTERNATIONAL DEVELOPMENTS

TRAINING OPPORTUNITIES

OTHER

 

This publication has been carefully prepared, but is general commentary only. This publication is not legal or financial advice and should not be relied upon as such. The information in this publication is subject to change at any time and therefore we give no assurance or warranty that the information is current when read. The publication cannot be relied upon to cover any specific situation and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact the BDO member firms in Australia to discuss these matters in the context of your particular circumstances.

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