NSW Audit Office - Awareness - Issue 2003 04 - May 2003

AWARENESSccounting and Auditing Developments Issue 4 MAY 2003ACCOUNTING 1ACCOUNTING UPDATEUPDATEAASB PLANS FOR CONVERGING WITH IASB BY 2005AUDITING UPDATE 2At the April 2003 meeting of the Australian Accounting Standards Board made the following decisions on ‘Year 2005 Adoption of International INTERNATIONAL 2UPDATEAccounting Standards Board Standards’ (IASB) program:any additional Australian specific material such as requirements for MISCELLANEOUS 5not-for-profit and disclosures, would generally be included in the PUBLICATIONSbody of the standard. Such material would clearly be identified as TREASURY UPDATE 9being in addition to the adopted IASB Standardsdefer inclusion of references to Interpretations by the IASB’s PREMIER’S 10International Financial Reporting Standards Interpretation committee DEPARTMENT UPDATE(IFRIC). The UIG is currently aligning its Abstracts with IFRIC InterpretationsAUDIT OFFICE 11approval of five exposure drafts as follows with comments sought by BETTER PRACTICE30 June 2003. GUIDESED 110 ‘Cash Flow Statements’ is an Australian equivalent to IAS 7. ED 110 requires the direct method of presentation of the cash flow statement whereas IAS 7 permits a choice between the direct and indirect method. ED 110 will continue to require a reconciliation between profit from ordinary activities after tax to cash flows from ordinary operations. In addition, there will continue to be a specific Australian disclosure of credit ...