The Institute of Chartered Accountants Australia’s Essential Guidance for the June 2013 Reporting Season Report highlights subdued growth forecasts for the Australian economy over the next 12 months and uncertainty around the performance of all sectors, which the ICAA considers will have a significant bearing on financial statement preparation this financial year end. Directors, auditors and preparers of financial statements should pay particular attention to the assumptions underlying their reporting, in particular those relating to going concern and impairment of assets.
The Institute of Chartered Accountants Australia (ICAA) has released its Essential Guidance for the June 2013 Reporting Season (Report).
The Report outlines the current economic and regulatory issues that impact on accounting and reporting, and that should be carefully considered by directors, auditors and preparers of accounts in terms of reporting, assumptions and disclosure, including:
- the modest outlook for the Australian economy over the next 12 months;
- the possibility of interest rate cuts (which may impact on the appropriateness of discount rates for employee benefit liabilities and other valuations);
- the uncertainty generated by the peak in mining investment, the upcoming federal election and the rapid movements in the Australian dollar;
- global economic uncertainty;
- ATO’s focus on good corporate governance and tax risk management strategies;
- ASIC’s focus on operating and financial reviews (following the release of RG 247 Effective Disclosure in an operating and financial review) and the ASX’s release of the final version of the revised Guidance Note 8 Continuous Disclosure; and
- the end of the first year of the carbon pricing regime.
See ICAA’s media release dated 20 June 2013.