SMSF reminded about new changes in accounting standards for trust deeds

The ATO has reported that the new amended AASB accounting standards will apply from July 1, 2021, which could affect the trust deeds of some SMSF when presenting financial statements.

In June 2020, the ATO had informed that new amended accounting standards had been issued by the Australian Accounting Standards Board (AASB).

The AASB 2020-2 comes into effect on July 1, 2021.

This changes the reporting requirements of some for-profit private sector entities, which will no longer be able to self-assess financial reporting requirements and prepare Special Purpose Financial Statements (SPFS) if their trust deeds have been created or amended on or after July 1, 2021. and requires the preparation of financial statements in accordance with Australian Accounting Standards (AAS).

These entities will now be required to prepare, at a minimum, Level 2 General Purpose Financial Statements (GPFS) that meet all AAS recognition and measurement requirements and simplified minimum disclosures.

The ATO said these changes mean that new SMSFs created after July 1, 2021 and wishing to prepare SPFS will need to ensure that they do not have a clause in their trust deeds requiring their financial statements to be prepared in accordance. at AAS.

“Likewise, existing SMFSs that intend to change their trust deed after July 1, 2021 should remove such a clause if they wish to continue preparing for the SPFS,” the ATO said.

“Most SMSF trust deeds refer to financial statements being prepared in accordance with super laws and do not refer to AAS, so this should not become a problem for the majority of SMSF.”

It comes as a accounting specialist had previously reported AFSL license holders may also be caught in the crossfire of new financial reporting requirements for companies that were not previously reporting entities, potentially creating a mass exodus.

Tony zhang

Tony Zhang is a reporter at SMSF Adviser, which is the premier source of information, strategy and educational content for professionals working in the SMSF industry.

Since joining the team in 2020, Tony has covered various publications in the legal, financial and professional services industries including Lawyers Weekly, Adviser Innovation, ifa and Accountants Daily.

SMSF reminded about new changes in accounting standards for trust deeds

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Last updated: May 27, 2021

Posted: May 27, 2021

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