Clarity in financial reporting monthly newsletter

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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.

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

Australian financial reporting guide(1)

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?

Models series

Model Tier 1 financial statements(2)

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?

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?

Model half-year financial statements(3)

Disclosing entities and other entities preparing half-year reports

What are some of the significant changes to consider at half-year?

Model special purpose financial statements(1)

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?

(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:

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