The Removal of Special Purpose Financial Statements (SPFS) by certain for-profit entities comes into effect on 1 July 2021. This has been an ongoing project discussed at length with Australian stakeholders and its concept has been reported on by industry publications. The purpose behind the removal was to create a simple, objective, consistent, comparable, transparent and enforceable financial reporting framework, due to SPFS lacking in each of these areas to date. This has been an area of concern not only for the AASB, but other regulators as well.
The AASB continued to work closely with the Auditing and Assurance Standards Board (AUASB). In 2020 we collaborated on two joint publications regarding the impact of COVID-19 on financial reporting and the auditor’s considerations, as well as its impact on going concern and related assessments. The COVID-19 pandemic and its impact on reporting entities has meant that both the AASB and AUASB have had to adapt quickly to change, in order to provide appropriate guidance that will continue to instil confidence in the Australian economy during these unprecedented times.