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Clarity in financial reporting monthly newsletter
December 2020 edition
Our monthly Clarity in financial reporting newsletter informs you of key focus areas in financial reporting for the month: actions, developments, and dates.
In this issue
Key actions
- Update on deadlines for December 2020 reporting periods
- New approach for models for December 2020 and updated reporting guide
Key developments
Key actions
Update on deadlines for December 2020 reporting periods
Action: Consider how the ASIC and ASX extensions may impact the delivery timeframes for your December 2020 financial reporting.
Following our update in November 2020 about the announcements by ASIC and the ASX that extended reporting and lodgement deadlines would be available for half-years and full years ending up to 7 January 2021, ASIC has published ASIC Corporations (Amendment) Instrument 2020/1080 to give effect to the deadline extensions. The instrument amends the dates only and the other requirements remain the same as at June 2020.
We have published a Clarity newsletter to provide an easy-to-follow summary of the deadlines for December 2020 reporting periods.
More information: Clarity publication Financial reporting deadlines for December 2020
New approach for models for December 2020 and updated reporting guide
Action: Refer to the latest versions of our model financial statements and Australian financial reporting guide for the December 2020 reporting season and ensure you understand how they work together.
We have overhauled the models series in the current period. As a result of these changes, there will be the following documents going forward:
Document |
Who it is for? |
Apart from example disclosures, what questions will this document help solve? |
Overall guidance |
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A stand-alone guide. Anyone seeking to understand financial reporting in Australia, including reporting mandates and Australia’s differential reporting framework. |
What type of financial statements should we be preparing? Can we still prepare special purpose financial statements? How does tax consolidation work? Are we required to submit GPFS to the ATO? What relief does ASIC provide for wholly owned subsidiaries? |
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Models series |
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Listed entities, other entities with public accountability and those choosing Tier 1. |
What are ASIC’s key focus areas? What new standards are effective for December 2020? What are the disclosure areas impacted by climate change and/or COVID-19? |
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Model Tier 2 financial statements(3)(4) |
Entities without public accountability applying ‘Simplified Disclosures’ |
What disclosures are required on transition? What disclosures are not required under Tier 2? |
Disclosing entities and other entities preparing half-year reports |
What are some of the significant changes to consider at half-year? |
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Entities that are not reporting entities (mainly only not-for-profits from 2021) Certain for-profit exempt trusts, partnerships etc (from 2021). |
What is new for the reporting season? |
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(1) This will be updated as required – when major changes occur
(2) This will be updated for December and June (what’s new and Australian-specific considerations)
(3) This will be updated for each December reporting period
(4) The December 2020 version of this document will be issued early 2021.
More information: Model financial statements
Key developments
Two minute update
Why now? The following publications and developments are relevant for the December 2020 reporting season.
A quick summary of recent developments:
- IFRS in Focus publication on closing out 2020 – This special edition sets out financial reporting issues that may be relevant for years ending on or after 31 December 2020 as a result of regulatory focus, the current economic environment or changes in accounting standards.
- New editions of our ‘A closer look’ publication – Two new editions are available, providing more in-depth analysis of important topics:
- A Closer Look — Investor demand for corporate reporting in line with the Paris Agreement on climate change
- A Closer Look — Financial instrument disclosures when applying Interest Rate Benchmark Reform – Phase 1 amendments to IFRS 9 and IAS 39 and Phase 2 amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16.
Contact us
Recommendations
Clarity in financial reporting
Insights into financial reporting topics
Model financial statements
Illustrative best practice guides to financial reporting
