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Financial Reporting Standards Update - December 2018

18 December 2018

Australian financial reporting is poised to go through the biggest upheaval since Australia adopted International Financial Reporting Standards (IFRS) in 2005, with the introduction of three new standards that will significantly change the financial reporting landscape for how entities account for financial instruments, recognise revenue and how lessees account for operating leases.

For for-profit entities, these changes result from the triple threat accounting standards (AASB 9, 15 & 16) that come into effect between now and 2019, and raise a plethora of issues for organisations in every industry sector. For not-for-profit entities, the changes result from the triple threat accounting standards (AASB 9, 15 & 16) and AASB 1058. AASB 1058 applies to years beginning on or after 1 January 2019.