The Financial Reporting Bill has passed its first reading in the House. The Bill seeks to overhaul financial reporting rules by repealing and replacing the Financial Reporting Act 1993. The Bill applies to any reporting entity required to prepare financial statements in accordance with GAAP or non-GAAP standards and retains the External Reporting Board. Key new features of the Bill are that it:
- aims to reduce compliance costs for "non-large" and "non-issuer" companies by removing the requirement to produce complex financial statements; and
- simplifies compliance obligations for charities and allows the External Reporting Board to issue accounting standards for registered charities (and other entities).
The Bill has been referred to the Commerce Select Committee. Submissions are due on 18 January 2013. Further information on the Bill can be accessed here.