Does the impending change to the Conceptual Framework for Financial Reporting affect you?
In May 2018 the Australian Accounting Standards Board (AASB) released a consultation paper resulting from the International Accounting Standards Board’s (IASB) ongoing drive to revise and update the Conceptual Framework for Financial Reporting.
The revised conceptual framework (RCF) will include a revised definition of the “reporting entity”. As a result, SAC1 Definition of the reporting entity, which is currently adopted in Australia, will be removed. As some entities struggle to decide if they are a reporting or a non-reporting entity, the revised framework will bring consistency to financial reporting by removing the option of preparing special purpose financial statements (SPFS).
If you think you might be affected by the impending change, click on our latest newsletter to learn more.