Implementing new accounting standards
Guide for directors
Over the last few years, the fast pace of change in financial reporting has continued, with standard setters completing key projects on revenue, financial instruments, leases, and insurance. These standards are expected to result in significant changes to the financial statements of some entities. With any significant change in accounting, there are also broader business considerations that need to be addressed.
Directors will need to engage with management to ensure that new standards are considered early to identify any issues that may arise on implementation. For some entities this process may be driven primarily by the audit committee, however all directors will need to consider the key impacts to the business and to stakeholder communications.
This publication includes questions for directors to ask themselves and management regarding the transition to new financial reporting standards.