MYO 0.00% $3.40 myob group limited

Software accountancey (new ) effecting all Oz Comp

  1. 4,330 Posts.


    Posted By Subject Post Time Post ID


    ilrobbinrosso (ID#: 406483) I guess the software will have to be changed tax 23/5/02 10:30:14 PM 5194303
    « Previous Message Next Message »

    viking116 (ID#: 399317) Standard AASB 1020-effect from 1 July 2002 9/3/02 1:19:04 AM 4882398
    « Previous Message Next Message »
    ---------------------------------------------------------------------
    http://www.ey.com/Global/gcr.nsf/Australia/News_release_-_
    ---------------------------------------------------------------------
    Tax effect accounting set to be next big challenge following introduction of GSTErnst & Young urges preparedness as fundamental shift in tax accounting practices looms21 February, 2002
    Ernst & Young has monitored an unprecedented level of interest in the run up the introduction of a new accounting standard which could prove to be the next biggest challenge for Australian businesses following the introduction of the GST. When it comes into effect from 1 July 2002, the Australian Accounting Standard AASB 1020 "Income Taxes" (revised) will impact every Australian company as the changes represent a fundamental conceptual shift in the method of accounting for income taxes (tax effect accounting).
    ---------------------------------------------------------------------
    "Under the revised Standard, which is in line with key international Standards, the focus will be on a company's balance sheet, rather than on its profit and loss statement," said Ms Ruth Picker, Partner, National Accounting & Auditing Standards, with Ernst & Young.
    ---------------------------------------------------------------------
    "Given the response that we have had to our educational seminars and the feedback we have been receiving from our clients, it is clear that the introduction of the new standard is a particularly hot topic for most companies. We regard this as one of the most important accounting issues facing Australian companies since the introduction of the GST," she said.
    ---------------------------------------------------------------------
    Ernst & Young's educational seminars on the new standard are already oversubscribed with over 800 tax and accounting personnel rushing to better understand the Standard's full impact in seminars in Sydney and Melbourne in February.
    ---------------------------------------------------------------------
    According to Ms Picker, the issues relating to the Standard can look deceptively simple when bundled up. "We caution, that companies must have a thorough understanding of the Standard in order to predict and prepare for its business-wide impact. Assessing the full impact of the AASB 1020 (revised) is essential because looking at the change as simply an accounting issue will expose a company to a raft of risks. To identify and prepare for the full impact of the revised Standard, the wider business issues associated with the new method of tax-effect accounting need to be unpacked. The issues likely to end up on the table for most companies will include transition, tax planning, integration of the new tax consolidation rules with the new accounting rules, the management of income tax expense and operational issues".
    ---------------------------------------------------------------------
    The new balance sheet method of tax-effect accounting is more comprehensive in recording the taxation consequences of transactions recognised in financial reports. In the past, tax-effect accounting calculations were based on a comparison of profit and loss statements in a process that identified timing differences. Under the revised Standard, these calculations will be based on balance sheets. As a result, items that might have been previously ignored in tax-effect accounting calculations, such as revaluations, foreign currency issues, equity accounting, and acquisitions, will now need to be considered.
    ---------------------------------------------------------------------
    Ernst & Young emphasises the need for tax and accounting functions to work closely together to ensure optimal business outcomes are achieved under the new rules. Under the revised Standard, tax planning will need to incorporate strategic assessment from both accounting and tax specialists due to the potential impact of the new tax-effect accounting rules.
    ---------------------------------------------------------------------
    The new balance sheet method relies on the determination of tax assets and liabilities-effectively a tax balance sheet. As a result, the calculation of tax values is central to the approach. The application of tax knowledge is crucial to the determination of the tax base of assets and liabilities.
    ---------------------------------------------------------------------
    Read more in our Tax-effect accounting - Unpacking the impact.
    ---------------------------------------------------------------------
    Further media information:
    ---------------------------------------------------------------------
    Matthew Coleman
    National Public Relations Manager
    Ernst & Young
    Tel: 61-2-9248 5828
    Mobile: 0410 589 528
    ---------------------------------------------------------------------
    Christian May
    Media Relations Manager
    Ernst & Young
    Tel: 61-2-9248 5030
    Mobile: 0405 255 503
    ---------------------------------------------------------------------
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.