OVERVIEW The December 2016 edition of the industry leading�XYZ Model Financial Accounts�has been designed to assist preparers through the December 2016 reporting period, as well as prepare them for 2017 and beyond. FEATURES XYZ Model Financial Accounts � December 2016 Reporting and Update�includes the following features: detailed disclosure checklists applicable for financial years and half-years ending 31 December 2016; updated, revised and simplified example note disclosures; detailed disclosure checklists applicable for future periods, which can be used by early adopters of recently issued Australian Accounting Standards; and revised model financial statements for a range of reporting and non-reporting entities, including not-for-profit entities and Australian financial services licence holders.
BENEFITS The December 2016 update of�XYZ Model Financial Accounts�also: provides step-by-step practical assistance to help you stay on top of your financial reporting obligations; helps you prepare for the adoption of mandatorily applicable Accounting Standards; saves you time on researching and keeping up to date with information that regularly changes; saves time and resources in producing professionally formatted and compliant financial reports; and reduces the risk of non-compliance and penalties. WHAT�S NEW We are excited to announce the inclusion of a new model in the December 2016 edition of�XYZ Model Financial Accounts, which complies with the amendments to AASB 101:�Presentation of Financial Statements�as part of the AASB�s disclosure initiative. This initiative has been very popular, with many listed entities across various industries early adopting the alternative approach as it gives the preparer the ability to present the financial statements in a format which they believe users will find easier to read and understand. The commentary, guidance and model financial accounts in�XYZ Model Financial Accounts � December 2016 Reporting and Update�have been updated for relevant legislative and accounting pronouncements and include: updated disclosure checklists applicable for financial years ending 31 December 2016; new note disclosures dealing with first-time adoption of new Standards or amendments to existing Standards as applicable; new note disclosures regarding new Accounting Standards not yet effective; updated, revised and simplified example note disclosures; and updated detailed disclosure checklists applicable for future periods, which can be used by early adopters of recently issued Australian Accounting Standards. For those preparing audited financial statements, we have updated the model audit reports for all XYZ entities to comply with the requirements of the new and amended Australian Auditing Standards issued by the AUASB late last year. These Standards are applicable for periods ending on or after 15�December 2016. Additionally, the Recent Developments section of this update provides detailed information on: the new Standard on accounting for leases, AASB 16:�Leases. This Standard is expected to fundamentally change the balance sheets of many entities, with some experts estimating over US$2.8 trillion of assets will be added to the balance sheets of listed entities globally; the implications of applying AASB 15:�Revenue from Contracts with Customers�to financial statements. Many entities are amending their systems and contracts with customers to prepare for this significant change to the key concepts of revenue recognition; and the potential impact on financial statements of adopting AASB 9:�Financial Instruments. These three new Accounting Standards, which will become mandatory for financial years beginning on or after 1 January 2018 for AASB 9 and AASB 15 and 1 January 2019 for AASB 16, represent substantial changes to various fundamental financial reporting concepts and are expected to not only impact financial statements, but have a wider effect on systems, governance and business.
