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?