NSW Audit Office - Awareness - Issue 2003 04 - May 2003

The Audit Office Of New South Wales

Description

AWARENESSccounting and Auditing Developments Issue 4 MAY 2003ACCOUNTING 1ACCOUNTING UPDATEUPDATEAASB PLANS FOR CONVERGING WITH IASB BY 2005AUDITING UPDATE 2At the April 2003 meeting of the Australian Accounting Standards Board made the following decisions on ‘Year 2005 Adoption of International INTERNATIONAL 2UPDATEAccounting Standards Board Standards’ (IASB) program:any additional Australian specific material such as requirements for MISCELLANEOUS 5not-for-profit and disclosures, would generally be included in the PUBLICATIONSbody of the standard. Such material would clearly be identified as TREASURY UPDATE 9being in addition to the adopted IASB Standardsdefer inclusion of references to Interpretations by the IASB’s PREMIER’S 10International Financial Reporting Standards Interpretation committee DEPARTMENT UPDATE(IFRIC). The UIG is currently aligning its Abstracts with IFRIC InterpretationsAUDIT OFFICE 11approval of five exposure drafts as follows with comments sought by BETTER PRACTICE30 June 2003. GUIDESED 110 ‘Cash Flow Statements’ is an Australian equivalent to IAS 7. ED 110 requires the direct method of presentation of the cash flow statement whereas IAS 7 permits a choice between the direct and indirect method. ED 110 will continue to require a reconciliation between profit from ordinary activities after tax to cash flows from ordinary operations. In addition, there will continue to be a specific Australian disclosure of credit ...

Informations

• Publié par: Pheav
• Nombre de lectures: 23
• Langue: English

Extrait

AWARENESS Accounting and Auditing DevelopmentsIssue 4 MAY 2003

ACCOUNTING UPDATE

AASB PLANS FOR CONVERGING WITH IASB BY 2005

At the April 2003 meeting of the Australian Accounting Standards Board a e t e o owin ecisions on Year 2005 A o tion o Internationa Accounting Stan ar s Boar Stan ar s IASB program:

ny additional Australian specific material such as requirements for ot- or- ro it an isc osures, wou enera e inc u e in t e o y o t e stan ar . Suc materia wou c ear y e i enti ie as eing in addition to the adopted IASB Standards

e er inc usion o re erences to Interpretations y t e IASB s International Financial Reporting Standards Interpretation committee (IFRIC). T e UIG is current y a igning its A stracts wit IFRIC Interpretat ons

pproval of five exposure drafts as follows with comments sought by June .

ED 110 Cas F ow Statements is an Austra ian equiva ent to IAS 7. ED 110 requires the direct method of presentation of the cash flow statement w ereas IAS 7 ermits a c oice etween t e irect an in irect met o . ED 110 wi continue to require a reconci iation etween pro it rom ordinary activities after tax to cash flows from ordinary operations. In ition, t ere wi continue to e a s eci ic Austra ian isc osure o cre it stan y arrangements.

 11‘BorrowingCosts’isanAustralianequivalenttoIAS23.ED111 winowac oiceinaccountinororrowincostsinres ecto ua i yingassets.Su scaneit erecapita iseorexpense .ED111  quirementofdisclosureoftheamount o rtinerio .

ED112‘Hyperin T erearenoc an es

ose

toIAS29inED112.

ED113FinanciaInstitutions renochangesproposedtoI30inED113.

equivalenttoIAS29.

30.T ere

T eAASBoesnotesr an  utta e resumptionthatthevalueofabiologicalassetcanbemeasu dreliably, nintro ucearu eort etreatmentoovernmentr .

Source GAAP A ert No 1, Apri 2003 .

AwarenessisublishedbTheAudi ewSouthWales,234SussexStreet,  x12,S dneNSW2001oneTe e  285 0155F x0001 285 Emaiit.nsw. ov.auTerr .Ho an@au e sitewww.au it.nsw. ov.au

ACCOUNTING UPDATE

AUDITING UPDATE

INTERNATIONAL UPDATE

MISCELLANEOUS PUBLICATIONS

TREASURY UPDATE

PREMIER’S DEPARTMENT UPDATE

AUDIT OFFICE BETTER PRACTICE GUIDES

1

2

2

5

9

10

11

AUDITING UPDATE

AUDITING AND ASSURANCE GUIDANCE STATEMENT AGS 1064 “AUDIT IMPLICATIONS OF PRUDENTIAL REPORTING REQUIREMENTS FOR GENERAL INSURERS”

The Auditing and Assurance Standards Board (AuASB) released this Guidance Statement in res onse to t e new ru entia su ervisor re ime intro uce in 2002 t e Austra ian Pru entia Regu ation Aut ority APRA or genera insurers.

T e Gui ance Statement wi assist au it practitioners to comp y wit recent re orms to re ortin an ru entia su ervision or t e enera insurance in ustr . Un er t e new regu atory requirements, au itors wi ave responsi i ity to report on genera insurers comp iance wit pru entia stan ar s an statistica reporting o igations to APRA. T is wi inc u e w et er enera insurers ave a e uate s stems an roce ures to ensure com iance wit t eir ris management strategy.

GUIDANCE NOTE-AUDITOR INDEPENDENCE AND OTHER SERVICES

A e as ect o Pro essiona Statement F1Pro essiona In epen encei i x rn u itor provi es ot er services to t e au it c ient, t is must not impair t e au itor s o jectivity. T is AuASB Gui ance Note provi es gui ance an examp es re ating to t is rinci e. T e A en ix to t e Gui ance Note c ari ies w et er t e service ma e rovi e ; re pro i ite ; or restricte . Pro i ite Services are t ose services t at must not e provi e in or er to ensure comp iance wit t e princip es in Pro essiona Statement F1. Restricte ervices are t ose services t at ma e rovi e in circumstances w en t ere are a ro riate sa eguar s e ine in accor ance wit Pro essiona Statement F1.

T e com Marc

ete Gui ance Note can

e own oa e romhttp://www.aarf.asn.au/docs/NewGuidanceNote

T e Pro essiona tatement F1 can e oun un er o e o Pro essiona on uct in t e Mem er s Han oohttp://www.icaa.org.au/membershandbook/

INTERNATIONAL UPDATE

IAPS 1014 REPORTING BY AUDITORS ON COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSS)  i anceont esau itor itiesres onsi i w enentities state alstatementsinaccordancewithIFRSswhen, inact,t ey rovi einInternationaStan aron Au itin700,T eA ents.

2

TheAuditOfficeofNewSouth

EXPOSURE DRAFT THE SPECIAL CONSIDERATIONS IN THE AUDIT OF SMALL ENTITIES, PROPOSED AMENDMENT TO INTERNATIONAL PRACTICE STATEMENT 1005.

T isEDresentsui anceonowau itsot einanciaerstateme i romau itsot einanciastatementsoot erItrevisest ecurrentIAP1005to takeaccountofISAsissuedbetw ch1999andMarch2003.TheIAASBagreedthatnew ISAsissuesu se uent c2003wou ,w enevernecessar ,a ressSMPconsi erations.

ommentsare

irey30June2003.

EXPOSURE DRAFT ASSURANCE ENGAGEMENTS PROPOSED “INTERNATIONAL FRAMEWORK FOR ASSURANCE ENGAGEMENTS,” PROPOSED ISAE 2000 “ASSURANCE ENGAGEMENTS ON SUBJECT MATTERS OTHER THAN HISTORICAL FINANCIAL INFORMATION” AND PROPOSED WITHDRAWAL OF ISA 120 “FRAMEWORK OF INTERNATIONAL STANDARDS ON AUDITING” (TO REPLACE INTERNATIONAL STANDARD ON ASSURANCE ENGAGEMENTS 100, ASSURANCE ENGAGEMENTS). orassurance   historical timaamxialornfnfiicnalp:e   ancerevironmental,   internalcontrols,andcompliancewithrantco,contractsandre

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Comments are require y 30 June 2003.

iateness

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The Audit Office of New South Wales

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INTERNATIONAL ACCOUNTING STANDARDS BOARD MEETING (IASB) MEETING ON 19-20 MARCH 2003

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Key matters from the meeting included:

ereco nition

w enanacquire combinationsho consi erationai

inations p ase II - t e Boar eci e t at

Financiainstruments–T eBoarr ussionsont epropose men ments to IA 32FinanciaInstrumePresentationanDisc osureanIA3ancia nstruments: Reco nition an MeasurementT owin atters: