NFP Financial Reporting| November

Wage underpayment FAQs

Wages underpayment has become a pressing issue in the Australian economy.  Several large businesses have admitted to having (often inadvertently) underpaid staff.

The Australian Accounting Standards Board has released Staff FAQs – Remuneration underpayments to remind entities of the standards that might apply when accounting for underpayments.

Three questions posed and answered are:

  • In what year should the payments be recorded?
  • How do I determine whether any prior-year payments are material and require a restatement of the financial statements? and
  • What disclosures are required?

AASB answers government-support intricacies

Governments are supporting businesses significantly affected by the pandemic.

For many entities, accounting for it will not be something previously encountered.

The AASB has released Staff FAQs − Accounting for Government Support to remind entities of the various standards that may apply to for-profit and not-for-profit entities.

Twelve questions posed and answered are:

  • Scope – is government support within the scope of AASB 120?
  • Is the accounting different among government grants and other forms of government assistance?
  • Government support meets the definition of a government grant. When do I recognise it?
  • When and how does an entity recognise government grants in profit or loss?
  • How to account for a grant if it becomes repayable?
  • What disclosure is required for government support?
  • Are any other disclosures required?
  • Scope – which standards are relevant to government support?
  • How should government support be accounted for?
  • Presentation – can grant income be presented net against the related expense?
  • What disclosure is required under AASB 1058 for government support? and
  • What additional disclosures should be considered?

New accounting standard on leases – factsheet updated

CPA Australia has released an updated fact sheet on the revised – and operational – leases standard.

To download, click here.

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