1 January 2018 is the transition date for the new revenue standard, AASB 15 Revenue from Contracts with Customers, and the new financial instruments standard, AASB 9 Financial Instruments, as well as the opening balance sheet date for entities choosing to retrospectively restate application of the new leases standard, AASB 16 Leases. In this edition, we include a published article summarising the high level impacts of these new standards, as well as a video highlighting the impact of the new leases standard for retailers and their store operating leases. In addition, changes have already been made to AASB 9 (IFRS 9) by the International Accounting Standards Board, resulting in a big change for entities involved in exploration projects via loan funding to interests in associates and joint ventures. These loans will need to be tested for impairment using the ‘expected credit loss model’ in AASB 9 before any equity accounted losses are recorded against the net investment loan.
We also continue our ‘Blind Freddy’ series on common errors made by preparers of financial statements, with the last article on the relatively straight forward standard, AASB 102 Inventories, exploring common errors when valuing inventories.
Finally, we highlight additional ethical responsibilities for professional accountants (including if you work in industry) to respond to instances of non-compliance with laws and regulations (NOCLAR).