Accounting and auditing or assurance standards change from time to time. Your accountant and auditor should be aware of the upcoming changes that are applicable to your charity.
The following new accounting standards takes effect for annual reporting periods beginning on or after 1 January 2019:
- AASB 15 Revenue from contracts with customers
- AASB 1058 Income of Not-for-profit Entities
This means that the revenue and income recognition contained in AASB 1004 Contributions and AASB 118 Revenue will no longer be applicable.
It is important charities consult with their accountants to understand the new accounting standards as this will have an impact on how the size of your charity is calculated as well as the preparation of your charity’s financial statements.
The following accounting standards have been amended which takes effect for charities applying these standards:
- AASB 9 Financial instruments (effective from annual reporting periods on or after 1 January 2018)
- AASB 16 Leases (effective from annual reporting periods on or after 1 January 2019)
The ACNC has also developed general guidance on how some of the new accounting standards may affect common aspects of accounting for charities.
The following auditing standards have been amended which takes effect annual reporting periods ending on or after 15 December 2016:
- ASA 700 Forming an Opinion and Reporting on a Financial report
- ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Framework
- ASA 705 Modifications to the Opinion in the Independent Auditor’s Report
The ACNC has developed audit and review templates that are designed for use by auditors developed and were developed with the assistance of the AUASB.
For more information on each of the standards, refer to the AASB website and the AUASB website.