Staying on the Right Side of SMSF Compliance
The ATO’s increased focus on market valuations, asset titles, contributions, and other key areas makes it essential to stay up to date with the latest regulatory requirements. […]
Emily Pritchard, current as of: 3 June 2021.
The Australian Accounting Standards Board has released an amended accounting standard that will change the reporting requirements of certain entities in the for-profit, private sector. AASB 2020-02 has a mandatory adoption date of 1 July 2021.
Certain private, for-profit entities will no longer be able to self-assess financial reporting requirements and prepare special purpose financial statements if their constituting documents (for example, trust deeds, SMSF trust deeds and partnership agreements) are created or amended after 1 July 2021 and require preparation of financial statements that comply with “Australian Accounting Standards.” Instead, general purpose financial statements will be required.
The amended standard applies to:
Because the partnership agreement is signed after 1 July 2021, the effect of AASB 2020-02 would be that the partnership is required to prepare general purpose financial statements and will not have the flexibility to self-assess its reporting requirements and prepare special purpose financial statements.
Because the trust deed was amended after 1 July 2021, the effect of AASB 2020-02 is that the trustee no longer has the flexibility to self-assess the trust’s reporting requirements and prepare special purpose financial statements. Rather, because the requirement to comply with “Australian Accounting Standards” was maintained in the trust deed when the amendment was prepared, the trust would be required to prepare general purpose financial statements.
The Acis Legal team has reviewed the documents we provide to ensure they preserve maximum flexibility in relation to financial reporting. The review and implementation will be completed by 1 July in line with the mandatory adoption date.
If amendments to existing documentation are made after 1 July 2021 (regardless of the purpose of those amendments), the reporting requirements of the entity contained in the existing documentation should be reviewed and, if required, amended at the same time. Amendments can be ordered through the Acis Legal team.
Feel free to contact the Acis Legal Services team with any queries.
Acis does not provide advice in relation to commercial law, taxation, duty, company law or any other matter. We do not purport to provide advice nor should you construe anything in any correspondence with us, or material provided by us, as advice of any kind. |
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