LEARN UPDATE
LATEST ETHICS, AUDIT AND REPORTING NEWS UPDATE
DECEMBER 2015 – MARCH 2016
Welcome to the first edition of CPA Australia’s newest publication, Latest Ethics, Audit and Reporting
News Update, or LEARN Update.
This publication provides a snapshot of upcoming changes to reporting, auditing and ethical Standards
and other developments within the accounting profession.
We hope you find LEARN Update to be a valuable tool.
REPORTING
Entities with 31 December year-ends will need to consider a number of amending Standards listed below
for the first time in their December 2015 financial reports.
Government entities with 31 December 2015 year-ends will also have to report in accordance with AASB
1055 Budgetary Reporting.
In addition to Standards that become mandatory for entities with December 2015 year-ends, two major
Standards (AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers) are
available for early adoption.
Superannuation Entities can also early adopt AASB 1056 Superannuation Entities for December 2015
year-ends.
Other amending Standards that are available for early adoption are also listed below.
Apply now:
 AASB 1055 Budgetary Reporting (PDF) Commencing 1 July 2014
 AASB 2013-1 (PDF) Commencing 1 July 2014, AASB 2013-9 (PDF) Part C commencing 1 January
2015, AASB 2014-1 (PDF) Parts A, B and C commencing 1 July 2014, Part E commencing 1 January
2015, AASB 2014-2 (PDF) Commencing 1 July 2014, AASB 2014-8 (PDF) Commencing 1 January
2015, AASB 2015-3 (PDF) Commencing 1 July 2015 for half-year reporting, and AASB 2015-4 (PDF)
Commencing 1 July 2015 for half-year reporting
Available for early adoption:
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AASB 9 Financial Instruments (PDF) Commencing 1 January 2018
AASB 15 Revenue From Contracts With Customers (PDF) Commencing 1 January 2018
AASB 1056 Superannuation Entities (PDF) Commencing 1 July 2016
A number of AASB amending Standards are available for early adoption. This includes AASB 2014-1
(Parts D), AASB 2014-3, AASB 2014-4, AASB 2014-5, AASB 2014-6, AASB 2014-7, AASB 2014-9,
AASB 2014-10, AASB 2015-1, AASB 2015-2, AASB 2015-5, AASB 2015-6, AASB 2015-7
AUDIT AND ASSURANCE
Audits for periods commencing in 2016 will need to apply a new suite of auditor reporting Standards,
which comprises a new Standard, ASA 701, as well as revisions or conforming amendments to the
Australian Auditing Standards. These new auditor reporting requirements are due to be issued by the
AUASB in December 2015 and will apply for periods ending on or after 15 December 2016.
Audits of listed companies will be most affected with a new requirement to report “Key Audit Matters”
(KAM), however all audits will be impacted by changes to the report format and disclosures and may
report KAM voluntarily. The changes conform with those issued by IAASB in January 2015 and details of
those changes are available on the IAASB’s webpage.
ASAE 3000, the overarching Standard for all attestation assurance engagements of subject matters other
than financial reports or other historical financial information, was completely revised and reissued for
engagements commencing on or after 1 January 2015. These revisions precipitated confirming
amendments to a number of the other Standards on Assurance Engagements, ASAE 3402, ASAE 3410
and ASAE 3420.
The new Standard on water assurance ASAE 3610 also applies for periods commencing 1 January 2015.
So the new Standards and amended Standards will apply for engagements or periods of 12 months or
less ending 31 December 2015, although many auditors will have adopted these Standards early. The
new and revised Guidance Statements apply from the date of issue.
Apply now:
Periods/ engagements commencing 1 January 2015:
 ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information
(PDF) Issued June 2014
 ASAE 3402 Assurance Reports on Controls at a Service Organisation (PDF) Issued June 2014
 ASAE 3410 Assurance Engagements on Greenhouse Gas Statements (PDF) Issued June 2014
 ASAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Historical Financial
Information included in a Prospectus or other Document (PDF) Issued June 2014
 ASAE 3610 Assurance Engagements on General Purpose Water Accounting Reports (PDF) Issued
February 2014
Available for early adoption:
The following Standard applies for periods or engagements commencing 1 January 2016, but is available
for early adoption.
 ASAE 3150 Assurance Engagements on Controls (PDF) Commencing January 2016
 New suite of auditor reporting Standards, including new ASA 701 and revisions to ASA 700, ASA 705,
ASA 706, ASA 570, ASA 260 and ASA 720 and numerous conforming amendments issued December
2015.
New & Revised Guidance applicable now:
 Guidance Statement GS 022 Grant Acquittals and Multi-Scope Engagements issued (PDF) Issued
June 2015
 Guidance Statement GS 009 Auditing SMSFs (PDF) Revised September 2015
 Guidance Statement GS 003 Assurance Relating to Australian Financial Services Licences issued
under the Corporations Act 2001 (PDF) Revised September 2015
Other Audit Resources:
Small Entity Audit Manual (SEAM)
PROFESSIONAL AND ETHICAL STANDARDS
Members of CPA Australia must comply with the Accounting Professional and Ethical Standards (APES),
which contain the professional and ethical requirements relating to professional activities. More
information can be found at cpaaustralia.com.au/ethics.
A number of APES have been amended as indicated below.
Apply now:
 APES 315 Compilation of Financial Information (PDF) Effective from 1 July 2015
 APES 350 Participation by Members in Public Practice in Due Diligence Committees in connection
with a Public (PDF) Effective from 1 October 2015
The following APES Guidance Notes (GN) have been revised:
 APES GN 30 Outsourced Services (PDF) Effective from 27 October 2015
 APES GN 40 Ethical Conflicts in the Workplace – Considerations for Members in Business (PDF)
Effective from 27 October 2015
Available for early adoption:
The following Accounting Professional & Ethical Standards (APES) have been revised. The revised
Standards are effective from 1 January 2016 with early adoption permitted.
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APES 205 Conformity with Accounting Standards (PDF)
APES 210 Conformity with Auditing and Assurance Standards (PDF)
APES 220 Taxation Services (PDF)
APES 305 Terms of Engagement (PDF)
APES 325 Risk Management for Firms (PDF)
APES 345 Reporting on Prospective Financial Information prepared in connection with a Public
Document (PDF)
REGULATORY UPDATE
ASIC
The Australian Securities and Investments Commission (ASIC) has released new focus areas for
financial reports with years ended 31 December 2015. The focus areas remain unchanged from before,
with ASIC continuing to focus on Impairment, off-balance sheet arrangements, revenue recognition and
expense deferral, tax accounting and key disclosures. For further information, visit www.asic.gov.au
Australian Charities and Not-for-profits Commission (ACNC)
For charities with 30 June 2015 year ends, the Annual Information Statement is due by 31 December
2015. In addition, medium and large charities will also have to lodge their financial reports by that date.
See more at www.acnc.gov.au.
SUBMISSIONS
Representing the diverse interests of more than 155,000 members in 120 countries, CPA Australia
regularly makes submissions to government agencies, Standard setters, committees and inquiries on
behalf of our members and in the broader public interest.
Submissions made by CPA Australia:
 Reporting
 Audit and Assurance
 Professional and Ethical Standards
Submissions open for comment:
 Reporting
 Audit and Assurance
 Professional and Ethical Standards
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