IAASB Guidance to assist auditors on IAS 1 changes

Friday, December 16, 2022

The IAASB has recently published new guidance to help auditors understand the impact on the ISAs due to narrow-scope amendments that have been made to IAS 1 Presentation of Financial Statements which require entities to disclose their material accounting policy information, instead of significant account policies. These amendments are effective for annual reporting periods beginning on or after 1 January 2023.

Consistent with the IASB, the AASB issued AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates in March 2021, which made equivalent amendments to AASB 101 Presentation of Financial Statements. The AUASB has identified 16 AUASB Standards that are impacted by these amendments. At the November 2022 AUASB meeting, the AUASB approved a project plan to develop an amending standard to update the terminology in the example auditor’s reports, review reports and engagement letters of these 16 Standards. The AUASB will issue this amending standard early in 2023. In the interim, the IAASB publication provides immediate guidance for Australian practitioners as to the wording changes throughout the illustrative reports and engagement letters.

For any questions please contact the AUASB at [email protected].