The below extract comes from the ATO website. It deals with the new accounting standards (AASB 2020-2). This new standard applies to large proprietary companies lodging financial accounts with the ASIC. The new accounting standard is referred to as Tier 2 General Purpose Financial Statements (GPFS).
Herein below the ATO has highlighted SMSF concerns and compliance with this standard. With an abundance of caution, we recommend superfund trustees review their SMSF deeds regarding question of compliance with Australian accounting standards when completing financial accounts.
New Accounting Standard AASB 2020-2 applies from 1 July 2021
A new amended accounting standard has been released by the Australian Accounting Standards Board (AASB). AASB 2020-2 will come into effect from 1 July 2021.
This will change the reporting requirements of certain for-profit private sector entities which will no longer be able to self-assess financial reporting requirements and prepare special purpose financial statements (SPFS) if their trust deeds were created or amended on or after 1 July 2021 and require preparation of financial statements that comply with Australian Accounting Standards (AAS).
These entities will now need to prepare, as a minimum, Tier 2 General Purpose Financial Statements (GPFS) that comply with all recognition and measurement requirements in AAS and minimum simplified disclosures.
This change means new SMSFs that are set up after 1 July 2021 and wish to prepare SPFS will need to ensure they don’t have a clause in their trust deeds that require their financial statements be prepared in accordance with the AAS. Similarly, existing SMFSs that intend to change their trust deed after 1 July 2021 should remove such a clause if they wish to continue preparing SPFS.
Most SMSF trust deeds refer to the financial statements being prepared in accordance with the super laws and do not refer to the AAS so this should not become an issue for the majority of SMSFs.
The AASB have published a key facts document which explains the impacts of AASB 2020-2 and this will assist the industry navigate any impacts of the new financial reporting requirements.
Should you have any queries, please do not hesitate to contact our office.
Date of Issue: 24 June 2020 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.