Our experts will provide you with topical content of relevance as well as an update on what’s new in financial reporting, including information about the following topics:

• Accounting standard changes and EDs
• International Financial Reporting Interpretations Committee update
• Key focus areas for 30 June reporting
• ASIC update
• Sustainability standards
• Other regulatory changes

Please note that we will host two session this year, the details for both sessions are below.

Session 1 – Financial Reporting update for 30 June 2025

Session 2 – Financial Reporting update for 31 December 2025

Expert speakers

Tom Mullarkey
Partner
SW

René Muller 
Partner
SW

Brent Sheers
Partner
SW

Jimmy Cao
Associate Director
SW

The post Financial Reporting webinar series appeared first on SW Accountants & Advisors.

Our experts provided topical content of relevance as well as an update on what’s new in financial reporting, including information about the following topics:

• Accounting standard changes and EDs
• International Financial Reporting Interpretations Committee update
• Key focus areas for 30 June reporting
• ASIC update
• Sustainability standards
• Other regulatory changes

Session 1

Session 2

Expert speakers

Tom Mullarkey
Partner
SW

René Muller 
Partner
SW

Jimmy Cao
Associate Director
SW

The post Financial Reporting webinar series appeared first on SW Accountants & Advisors.

Draft guidelines unveiled in February mandate sustainability reporting for companies listed on the Shanghai, Shenzhen, and Beijing Stock Exchanges. This move aligns with global trends as jurisdictions worldwide increasingly require sustainability and climate related reporting.

Guideline areas

The guidelines will encompass areas such as:

• Emissions
• Climate impact
• Governance
• Strategy
• Risk management

What does this mean for Australian Businesses?

• Australian businesses with connections to Chinese entities must prepare for heightened scrutiny regarding carbon emissions and adherence to international reporting standards.
• Chinese entities listed on the mentioned exchanges will be expected to disclose comprehensive sustainability reports, drawing on both domestic and international standards.

Globally, many jurisdictions have now released draft or final standards, draft or final legislation and rollout plans for companies to implement mandatory sustainability reporting. In Australia some entities are already including mandatory climate disclosures under the NGER legislation, and many more large companies in Australia are expected to need to comply with sustainability disclosure standards in the coming years. China mandating sustainability disclosures is in-line with what is happening in other jurisdictions and evidence of the current global trend. There is also significant focus in China on reducing emissions.

How can SW help?

In response to this shift, SW offers support to companies through gap analyses and readiness assessments for mandatory sustainability reporting. SW Partners, Rene Muller, John Dorazio, Tom Mullarkey, and Associate Director Jimmy Cao are available to provide guidance and assistance throughout this transition.

Reach out to your SW contacts or the key contacts here for a conversation.

Contributors

Jimmy Cao

The post China proposes mandatory Sustainability reporting for listed companies appeared first on SW Accountants & Advisors.

Past sessions

Webinar 1 | Getting ready for sustainability reporting

Webinar 2 | Carbon reporting

Webinar 3 | Sustainability reporting standards

Expert speakers

Tom Mullarkey
Partner
SW

Jimmy Cao
Associate Director
SW

René Muller 
Partner
SW

James Serpell
Senior Manager
SW

John Dorazio
Director
SW

The post Sustainability Reporting webinar series appeared first on SW Accountants & Advisors.

Our online seminar will be delivered in an interactive format with SW expert Daren Yeoh, Tax Director, Antony Cheung, Senior Tax Manager and Yang Shi, Tax Director. Our speakers will equip you with invaluable insights into the latest developments in corporate and international income tax.

This seminar will explore the following topics:

• Updates on Corporate and International Income Tax: Stay ahead with in-depth discussions on recent changes, including revisions to the thin capitalisation regime, debt creation rules, Pillar 2 implications, and nuances in dealing with intangibles.
• Impactful Changes to Dividend Franking Rules: Gain clarity on how recent amendments may affect dividend franking rules, ensuring you’re well-prepared for any forthcoming adjustments.
• Analysis of Develops in Case Law and ATO rulings: Delve into notable developments in case law and ATO Rulings to enhance your understanding of current legal precedents and their implications for corporate tax practices.

Event details

Date

Tuesday 26 March 2024

Location

Online (Zoom)

Time

9.30am – 10.30am AEDT

SW Speakers

Daren Yeoh
Partner and Corporate & International Tax Director
SW

Antony Cheung
Senior Tax Manager
SW

Yang Shi
Tax Director
SW

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Corporate Tax Update appeared first on SW Accountants & Advisors.

The exposure draft contains Australian Sustainability Reporting Standards (ASRS) 1 and 2, both of which focus on disclosure of climate-related financial information.

This approach contrasts with the approach taken by the International Sustainability Standards Board (ISSB) that issued a general sustainability standard (IFRS S1) and a climate standard (IFRS S2). Whilst the ISSB standards were used as the baseline, the proposed Australian standards in ED format contain a number of differences. The key differences between the proposed Australian standards and the international equivalent are as follows:

• limiting the required disclosure to climate-related financial disclosures only by replacing all references to ‘sustainability’ to ‘climate’
• edits to make the standards applicable to not-for-profit entities as well as for-profit
• edits to clarify certain technical matters around measurement and reporting of emissions
• some other edits to make the standard more applicable in the Australian context and to remove some duplication

The proposed standards will also be applicable to not-for-profit entities that meet the reporting criteria. However, the mandatory disclosure for not-for-profit entities will be less onerous than applies to for profit entities.

The Australian Parliament, rather the AASB, determined the entities scoped into the legislation. The AASB have included Treasury’s proposed roadmap, from its second consultation paper, for mandatory adoption of sustainability standards.

Treasury’s proposed roadmap for mandatory adoption includes:

Group 1 | 2024-25

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least two of the following:

• over 500 employees
• consolidated gross assets of $1bn or more
• consolidated revenue of $500m or more

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act and meet the NGER publication threshold.

Group 2 | 2026-27

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least two of the following:

• over 250 employees
• consolidated gross assets at end of company’s financial year and any controlled entities is $500m or more
• consolidated revenue for company’s financial year and any controlled entities is $200m or more

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act and meet the NGER publication threshold.

Group 3 | 2027-28

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least two of the following:

• over 100 employees
• consolidated gross assets at the end of the company’s financial year and controlled entities is $25 million or more
• consolidated revenue for the company’s financial and any controlled entities it $50m or more

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act.

ASRS Application Date

The AASB is proposing that ASRS 1, ASRS 2 and related references would be applied:

• for entities in Group 1 – in annual periods beginning on or after 1 July 2024
• for entities in Group 2 – in annual periods beginning on or after 1 July 2026
• for entities in Group 3 – in annual periods beginning on or after 1 July 2027

What we are advising our clients to do as next steps

• reach out to your SW contact to get more information
• familiarise yourself with the content of the proposed standards and seek clarification on how you will be impacted
• provide feedback to the AASB regarding the content of the exposure draft

You should also attend SW’s financial reporting webinar on Thursday 16 November to hear more about these proposed standards. Click here to register

How SW can help

Our team of audit and assurance experts are fully informed of the requirements of the sustainability accounting standards and can assist with providing guidance for your business, as well as keeping you abreast of developments from an Australian reporting context.

Reach out to your SW contacts or the key contacts here for a conversation.

Contributors

Jimmy Cao

James Serpell

The post Exposure Draft issued for Australia’s first Sustainability Reporting Standards appeared first on SW Accountants & Advisors.

This year our online seminar was delivered in an interactive format with SW expert Daren Yeoh, Tax Director. Daren provided an update on the latest in accounting for income taxes in 2023.

This seminar covered the following topics:

• Key tax changes to take into account in your TEA calculations
• Calculation of tax balances
• Equity accounted entries
• Impact of application of new Accounting Standards
• Business combinations
• Tax accounting for tax consolidated groups
• Accounting for tax uncertain tax treatments.

If you are looking to automate your tax effect accounting processes look no further than CTS for Corporates.  For details please go to: Complete Tax Solutions(CTS) or contact Daren on dyeoh@sw-au.com.

CTS for Corporates automatically:

• calculates the current and deferred tax balances
• generates the journals required to be posted
• generates the comprehensive AASB 112 compliant disclosure notes to be incorporated into the financial statements.

This means that the complex tax effect accounting is simplified, with the hard work being done for you.

In addition your tax return can be automatically generated and lodged.

SW Speaker

Daren Yeoh
Partner and Corporate & International Tax Director
SW 

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Tax Effect Accounting seminar appeared first on SW Accountants & Advisors.

The ASIC media release on 6 June 2023 outlined its key areas of focus for this reporting season, stressing the need for directors, preparers of financial reports and auditors to evaluate the potential impact of shifting circumstances, uncertainties, and risks.

Key areas of focus

Asset values

Considerations for directors, preparers, and auditors regarding asset values include:

• impairment of non-financial assets
• appropriate valuation methods
• factors affecting property values
• expected credit losses
• asset classification
• inventory valuation
• deferred tax assets
• investments in unlisted entities.

Provisions

Financial statement preparers need to provide sufficiently for potential expenses or obligations relating to onerous or loss-making contracts, property leases, restoring mining or other sites, providing financial guarantees, and making changes to your business.

Solvency and going concern assessments

In a growing interest rate market, debt can become very expensive to manage and covenant breaches more common resulting in solvency and going concern issues. Inflation is also an issue for many entities to manage. Our advice is to ensure that projections are reasonable and realistic and going concern disclosures are made with sufficient detail in the financial statements if there are material uncertainties surrounding going concern.

Events occurring after year end and before completing the financial report

It is important to review any events that happen between the end of the year and the completion of the financial report. This review should determine if these events have any impact on the assets, liabilities, income, or expenses at the end of the year or if they involve new conditions that need to be disclosed. Covenant breaches post year-end need to be identified. Adjustments or disclosures relating to relevant events post-year end is important to investors and other stakeholders. Omission of such material information could be problematic, in particular in an uncertain economic environment.

Disclosures in the financial report and Operating and Financial Review (OFR)

Disclosure of information is important to investors and other stakeholders. Directors must ensure disclosures are specific to the entity’s circumstances and highlight changes from the previous period. Address uncertainties, classify assets and liabilities correctly, and explain the impact of economic conditions in the Operating and Financial Review. Discuss risks, strategies, and consider climate change and cybersecurity risks. Present non-IFRS profit measures accurately and disclose significant developments since end of last year in half-year reports.

Impact of uncertainty

Market and economic conditions are particularly uncertain this year, which impacts financial reporting in areas where significant estimates and judgements are required in the financial statements.

The impact will be different depending on industry, geography, markets, suppliers and customers but very few industries are not facing significant uncertainty.

Directors and financial statement preparers should take into account what the entity’s current performance is, what the future holds and how those factors impact on values of assets, provisions and business strategies.

“We have seen ASIC take more action against Directors in recent times and recommend that Directors are across all the significant estimates and judgements in their financial reports, including ensuring material disclosures are appropriate, complete and accurate. In an uncertain economic environment, more estimates and judgements are required in financial reporting particularly when incorporating forward-looking information,”

Rene Muller, Partner SW Assurance and Advisory Division

The particular market conditions highlighted by ASIC as those representing changing circumstances, uncertainties and risks are:

• availability of skilled staff and expertise, which can impact on revenue and costs
• impact of rising interest rates on future cash flows and on discount rates used in valuing assets and liabilities
• inflationary impacts that may differ between costs and income
• increases in energy and oil prices
• geopolitical risks, including the Ukraine/Russia conflict
• impacts of climate change, climate related events and transitioning to ‘net zero’
• technological changes and innovation
• COVID-19 conditions and restrictions during the reporting period
• changes in customer preferences and online purchasing trends
• discontinuation of financial and other support from governments, lenders and lessors
• legislative and regulatory changes
• other economic and market developments.

How SW can help

Our team of audit and assurance experts are fully informed of the ASIC focus areas and can assist with providing guidance for your year-end financial reporting, as well as keeping you abreast of developments from an Australian reporting context.

Reach out to our key contacts here for a conversation.

Key contacts

Jimmy Cao

The post ASIC focus areas for 30 June 2023 reporting appeared first on SW Accountants & Advisors.

The ISSB has issued two standards focusing on material risks and opportunities related to sustainability (IFRS S1) and climate (IFRS S2). The new standards are effective for reporting periods beginning on or after 1 January 2024 however, each jurisdiction may choose its own effective date and which entities would be mandated to comply.

In Australia, Treasury received a range of responses to its first consultation paper regarding rollout for mandatory climate disclosure, and the majority of stakeholders agreed that a phased approach should be implemented.

Treasury has now released a second consultation paper, open until 21 July 2023, seeking consultation on several issues such as the timing of the rollout and covered entities, seeking input whether the standards should initially apply to listed entities and what an appropriate entity size would be. Other matters under consultation include what the legislative framework in Australia would be and who entities would be reporting to.

Proposed rollout

Treasury’s proposed roadmap for mandatory adoption can be summarised as follows:

Group 1 | 2024-25

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least 2 of the following:

• over 500 employees
• consolidated gross assets of $1 billion or more
• consolidated revenue of $500 million or more.

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act and meet the NGER publication threshold.

Group 2 | 2026-27

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least 2 of the following:

• over 250 employees
• consolidated gross assets at end of company’s financial year and any controlled entities is $500 million or more
• consolidated revenue for company’s financial year and any controlled entities is $200 million or more.

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act and meet the NGER publication threshold.

Group 3 | 2027-28

Entities preparing accounts in accordance with the Corporations Act (chapter 2M) and meets at least 2 of the following:

• over 100 employees
• consolidated gross assets at the end of the company’s financial year and  controlled entities is $25 million or more
• consolidated revenue for the company’s financial and any controlled entities it $50 million or more.

AND Entities preparing accounts in accordance with the Corporations Act (chapter 2M) that are a ‘controlling corporation’ under the NGER Act.

Voluntary reporting disclosure

Whilst currently not mandatory, many organisations will choose to early adopt, particularly if they know their investors or other stakeholders will find the information relevant. This includes entities in industries that are expected to be significantly impacted by climate change and/or sustainability related matters.

SW highly recommends that entities consider the adequacy of systems and processes to capture sustainability and climate related information.

How SW can help

Our team of audit and assurance experts are fully informed of the requirements of the sustainability accounting standards and can assist with providing guidance for your business, as well as keeping you abreast of developments from an Australian reporting context.

Reach out to our key contacts here for a conversation.

Contributors

James Serpell

The post Sustainability Accounting Standards issued appeared first on SW Accountants & Advisors.

This year, the series was delivered online with a focus on topics of particular relevance and importance to our clients in 2023, and also provided a general update on what’s new in financial reporting.

Series details

Webinar 1: Financial Reporting update for 30 June 2023

Our experts provided insight and an update on:

• Accounting standard changes
• Key focus areas for 30 June 2023 reporting
• ASIC update
• Corporate governance update
• Sustainability standards
• Other regulatory changes

Webinar 2: Financial Reporting update for 31 December 2023

Our experts covered:

• Accounting standard changes
• Key focus areas for 31 December 2023 reporting
• ASIC update
• Corporate governance update
• Sustainability standards
• Other regulatory changes

Series experts

Tom Mullarkey
Partner, Assurance and Advisory Services
SW 

René Muller
Partner, Assurance and Advisory Services
SW 

Jimmy Cao
Associate Director, Assurance and Advisory Services
SW 

James Serpell
Senior Manager, Assurance and Advisory Services
SW 

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Financial Reporting Webinar Series appeared first on SW Accountants & Advisors.