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State and Fed Govt financial-reporting harmonised; AASB looks at more onerous standards for private companies, non-profits

Posted by gasweek on 11 October, 2007

The accounting standards-setter has agreed to harmonise Federal and State Government financial reporting and progressed talks with New Zealand to ensure the two countries’ standards were “as similar as possible”, wrote Patrick Durkin in The Australian Financial Review (8/10/2007, p.8).

International standards: But the Australian Accounting Standards Board has yet to decide on the controversial proposal to overhaul financial reporting to make private companies and non-­profits use international accounting standards. The AASB also adopted new standards for financial reports put forward by the international accounting standards-setter earlier this month. The standards applied to annual reporting periods beginning on or after 1 January 2009, with early adoption permitted.

Comparison changes: “One of the changes means you will have to provide three years of comparison, rather than just two in your financial statements where there has been a change in your accounting practices,” Professor Boymal said. “That’s pretty radical stuff in our world.” The AASB was yet to decide on the controversial proposal to apply international standards to private compan­ies, the public sector and non-profits.

Church and State, too: While accountants generally sup­port applying the international stan­dard, they said the AASB proposal meant about 3,000 private companies would also be required to prepare their accounts under the more oner­ous international standards. And public-sector organisations that table accounts in parliament, charities limited by guarantee, and some churches would also have to use the global rules.

The Australian Financial Review, 8/10/2007, p. 8


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