AASB Concerned Regarding Investment Organization Amendments
The AASB has taken a tentative decision as per which it will be delaying the adoption of the investment organization amendments in Australia. These amendments were issued by the International Accounting Standards Board and the board plans to adopt them only after the due procedure is adopted for extra note disclosures of the concerns that may arise in view of consolidation related information resulting from the IFRS amendments.
The above decision was taken during a meeting of the Australian Accounting Standards Board that took place on 31st of October and 1st of November. The AASB has also posted the summary of its meeting on its website. In its summary the AASSB has pointed toward the issues pertaining to investment organization related amendments and also shared that an Australia specific draft should be issued and it should contain proposals focusing on disclosure of 3 main statements that would be generated after complete consolidation.
The paper released by the Australian Accounting Standards Board also included discussions regarding some of the options which the board could have opted for with regard to investment organization amendments. AASB’s paper consists of the likelihood of non-adoption of the investment organization amendments under any circumstances that would further undermine the investment organization’s ability to put forth claims of compliance with International Financial Reporting Standards.
In AASB’s paper their staff has noted that irrespective of the approach implemented by the AASB with respect to investment organizations, the Australian Accounting Standards Board will have to make compromises with regard to one or any other of its reporting policies. The paper also pointed out that the amendments related to IFR Standards are not in line with the policy ‘transaction neutrality’ stated by the AASB. This policy clarifies that as per the Australian Accounting Standards Board the basic nature of the statement’s elements i.e. liabilities, expenses, income and assets as well as their qualitative features usually do not get affected by varied models of business.
AASB’s paper also points out that if any other method aside to making amendments as per the amendments related to IFRS is adopted then it would result in AASB compromising on its policy of carrying out modification of International Financial Reporting Standards for non-for-profit organizations.
- Leading UK Furniture Business Collapses into Administration
- ICAEW Signs MoU with ICAI
- Companies House Updates the Penalty Appeal Proceess for Late Filing
- Internet Security: How to Prevent Attacks on the Network
- Big Four Firms Dominate the List of Cyber Security Recruiters
- Accountancy bodies Working Together Against Businesses Involved in Money Laundering
- Xero Reports Revenue Growth of 36% in the FY 2019