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Clarity

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Building confidence, knowledge, and resilience

Welcome to the Winter 2024
edition of Clarity

Our aim is to deliver greater clarity and understanding of current and emerging advisory, accounting and audit issues. With this publication, Clarity, we share our knowledge, thought leadership, and expertise, in areas that will solve problems and create solutions for businesses in our region. We hope you find inspiration in this edition. Please don't hesitate to contact your local Audit and Assurance team to discuss any of the topics we explore.

Clarity Magazine Circle Image Winter2024
Unpacking the new consolidated entity disclosures

Clarity Mag

Unpacking the new consolidated entity disclosures
As a result of the introduction of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023, from 30 June 2024 onwards, Australian public companies who prepare a consolidated financial report (except those companies that report to the ACNC) must include a new consolidated...
Ken Weldin

Ken Weldin

Partner

Melbourne

Strengthen resilience

Clarity Mag

Strengthening resilience: Considerations for Australian business following the largest global outage in history
On Friday, 19 July 2024, worldwide infrastructure crumbled in what is now recognised as the largest outage the global economy has ever seen. A critical error in CrowdStrike Falcon led to a widespread outage affecting organisations relying on their endpoint protection services. The error was introduced during a routine software...
Tony Corry 900x1200

Tony Corry

Director - Technology Assurance and Advisory

Brisbane, Melbourne

ASIC focus

Clarity Mag

ASIC focus to improve investor confidence and knowledge
In May 2024, ASIC published its Focus Areas for the 30 June 2024 reporting season, giving priority to educating and building the confidence of investors. ASIC focus areas are now classified as either: Enduring focus areas, orParticular focus areas. ASIC highlighted financial reporting areas which they have determined to be...
James Lee

James Lee

Partner

Sydney, Newcastle

Enabling a consistent approach to tax

Clarity Mag

Enabling a consistent approach to tax affecting your leases and decommission responsibilities
For the year ended 30 June 2024 (and 31 December 2023), entities are required to recognise a related deferred tax asset (DTA) and a deferred tax liability (DTL) for leases and decommissioning liabilities. In June 2021, the Australian Accounting Standard Board (AASB) published AASB 2021-5 Amendments to Australian Accounting Standards...
Garry Mathoda

Garry Mathoda

Director

Sydney

Time running out to implement bribery prevention

Clarity Mag

Time is running out to implement foreign bribery prevention measures
In March 2024, the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 (Cth) was passed. The Act is designed to remove barriers to foreign bribery investigations and prosecutions previously faced by law enforcement and prosecutors. The key changes include: A company will be criminally liable if an associate (an officer,...
Geoff Peck 900x1200

Geoff Peck

Partner - PKF Integrity

Melbourne

Elevation and maturity of the internal audit function

Clarity Mag

Elevation and maturity of the internal audit function
With less than six months to go, has your organisation considered how to implement the new internal audit standards? Internal Audit (‘IA’) plays a vital role in helping organisations achieve improved performance, in ensuring risks are adequately managed in an increasingly complex landscape, and in protecting the public interest. To...
Amy Daley sq
Tim Cronin

2 contributors

Brisbane

Clarity Winter 2024

Clarity comes in multiple forms.

All articles of the Winter 2024 edition of Clarity are featured above. If you would prefer to read Clarity as a full document, cover-to-cover, download the publication here.

Download the Winter edition here
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Search the full archive

Orange moon over Sydney

Clarity Mag

Mandated climate reporting in Australia
On 27 March 2024, a Bill was passed in the Australian Government to mark a new era in mandated sustainability reporting for all Australian businesses. Schedule 4 to the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) was introduced into the House of Representatives to establish...
Jim Headhost linkedin
Ken Weldin

2 contributors

Melbourne

Data governance 2000

Clarity Mag

Data governance — a decision making approach
Over the past year, PKF, working with the Governance Institute of Australia, Macquarie University’s DataX Research Centre, and other expert organisations, has supported an important research study to assess the data governance landscape in Australia. The findings are unexpected and motivating.Survey participants and process In August 2023, the Governance Institute...
Ken Weldin

Ken Weldin

Partner

Melbourne

Cyber 2000

Clarity Mag

Cyber security as a cornerstone of sustainable supply chain
Imagine this... your business has undergone rigorous internal audits and your processes gleam. But, a single security breach in one of your supplier’s systems exposes sensitive data, disrupts operations, and shatters customer trust. In 2024, with rampant cybercrime, complex global partnerships, and data privacy regulations tightening, ignoring supply chain security...
Phillipa Ngorima sq

Phillipa Ngorima

IT Auditor

Sydney, Newcastle

Local council 2000

Clarity Mag

Local government changes — a sign of the times
As of mid-2022 all NSW local government councils and joint organisations were required to have considered the 2023 Risk and Audit Guidelines. The 2023 Guidelines replace the 2010 NSW Government’s Internal Audit Guidelines for Local Government in NSW. They seek to incorporate findings and lessons learnt from relevant industry reviews...
Amy Daley sq
Tim Cronin

2 Contributors

Brisbane

Economic update 2000

Clarity Mag

How the economy is impacting financial reporting
Our economic climate is changing, and so too is how we must approach the preparation of financial reports for upcoming reporting periods. Changing conditions means that the preparation of financial reports will not simply be a rollover of the estimates used in the preparation of the previous financial report. Many...
Kevin Helmers Website Headshot

Kevin Helmers

Partner

Newcastle, Sydney

Tax governance matters

Clarity Mag

Tax governance matters
Taxation in Australia is both complicated and constantly changing. Public interest in the tax system is arguably at an all-time high. Politically there is a desire to increase tax transparency for larger businesses and high net worth individuals to provide community confidence that ‘the bigger end of town’ is paying...
Garry Mathoda

Garry Mathoda

Director

Sydney

Data analysis revolution

Clarity Mag

Embracing the data analytics revolution
Data analytics, at its core, is the art and science of extracting actionable insights from the labyrinth of data. It encompasses the use of cutting-edge tools and methodologies to dissect, analyse, visualise, and interpret data, leading to informed and strategic decision-making. This pivotal concept has gained immense significance in today’s...
Sangeetha Ravisankar

Sangeetha Ravisankar

Senior Data Analyst

Sydney, Newcastle

Countryside

Clarity Mag

ESG: The future of reporting
In our continued exploration of better practice in Environmental, Social, Governance (ESG) reporting, our focus turns to the agricultural sector. We hope this case study provides guidance and insight to support you on your own ESG journey. There are significant benefits to be gained by reporting on ESG factors, however,...
Dawn Alexander

Dawn Alexander

Partner

New Zealand

ESG Broken Hill

Clarity Mag

Building trust through ESG: Community engagement in the mining sector
The mining industry, historically linked with significant environmental and social impacts, faces increasing pressure from stakeholders to demonstrate responsible business practices. This pressure is not just regulatory or market-driven, it comes from the very communities where these companies operate. This is where a robust Environmental, Social, and Governance (ESG) strategy...
Darren Shillington

Darren Shillington

Managing Partner

Perth

Elevation and maturity of the internal audit function

Clarity Mag

Elevation and maturity of the internal audit function
With less than six months to go, has your organisation considered how to implement the new internal audit standards? Internal Audit (‘IA’) plays a vital role in helping organisations achieve improved performance, in ensuring risks are adequately managed in an increasingly complex landscape, and in protecting the public interest. To...
Amy Daley sq
Tim Cronin

2 contributors

Brisbane

Time running out to implement bribery prevention

Clarity Mag

Time is running out to implement foreign bribery prevention measures
In March 2024, the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 (Cth) was passed. The Act is designed to remove barriers to foreign bribery investigations and prosecutions previously faced by law enforcement and prosecutors. The key changes include: A company will be criminally liable if an associate (an officer,...
Geoff Peck 900x1200

Geoff Peck

Partner - PKF Integrity

Melbourne

Enabling a consistent approach to tax

Clarity Mag

Enabling a consistent approach to tax affecting your leases and decommission responsibilities
For the year ended 30 June 2024 (and 31 December 2023), entities are required to recognise a related deferred tax asset (DTA) and a deferred tax liability (DTL) for leases and decommissioning liabilities. In June 2021, the Australian Accounting Standard Board (AASB) published AASB 2021-5 Amendments to Australian Accounting Standards...
Garry Mathoda

Garry Mathoda

Director

Sydney

ASIC focus

Clarity Mag

ASIC focus to improve investor confidence and knowledge
In May 2024, ASIC published its Focus Areas for the 30 June 2024 reporting season, giving priority to educating and building the confidence of investors. ASIC focus areas are now classified as either: Enduring focus areas, orParticular focus areas. ASIC highlighted financial reporting areas which they have determined to be...
James Lee

James Lee

Partner

Sydney, Newcastle

Unpacking the new consolidated entity disclosures

Clarity Mag

Unpacking the new consolidated entity disclosures
As a result of the introduction of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023, from 30 June 2024 onwards, Australian public companies who prepare a consolidated financial report (except those companies that report to the ACNC) must include a new consolidated...
Ken Weldin

Ken Weldin

Partner

Melbourne

Strengthen resilience

Clarity Mag

Strengthening resilience: Considerations for Australian business following the largest global outage in history
On Friday, 19 July 2024, worldwide infrastructure crumbled in what is now recognised as the largest outage the global economy has ever seen. A critical error in CrowdStrike Falcon led to a widespread outage affecting organisations relying on their endpoint protection services. The error was introduced during a routine software...
Tony Corry 900x1200

Tony Corry

Director - Technology Assurance and Advisory

Brisbane, Melbourne

Financial reporting

Clarity Mag

Changes to financial performance reporting to bring investors more consistency
On 9 April 2024 the International Accounting Standards Board (IASB) issued its new standard IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 (AASB 18, when adopted in Australia) will replace IAS 1 (AASB 101) Presentation of Financial Statements. This standard is effective for most for-profit entities for financial...
Simon Fermanis

Simon Fermanis

Partner

Perth

Revenue recognition

Clarity Mag

Revenue recognition for cloud software providers
The days of desktop versions of software files downloaded and installed on local computers (remember MYOB desktop?) are numbered and providers of software applications such as accounting applications, software security systems, ERPs and a myriad of others are moving to cloud deployments. This presents complexity for the provider of the...
PPP operators

Clarity Mag

PPP operators — have you considered AASB Interpretation 12?
Governments, including local governments and other public sector entities, often enter into arrangements with private sector entities, including charities, to operate and fund public services. These arrangements are commonly referred to as public private partnerships (PPPs). A common example is where, where a private sector entity (the operator), constructs and...
Kym Reilly

Kym Reilly

Partner

Sydney, Newcastle

Corporate governance principles

Clarity Mag

Proposed changes to the ASX corporate governance principles and recommendations
The 4th Edition of the ASX Corporate Governance Principles and Recommendations were issued in 2019. On 27 February 2024, the ASX Corporate Governance Council released its Consultation Draft for the 5th Edition of the Principles and Recommendations. The proposed changes are intended to strengthen listed entities’ governance and increase transparency...
Shaun Lindemann 1

Shaun Lindemann

Partner

Brisbane

ASIC 2000

Clarity Mag

ASIC surveillance results — areas of improvement for financial reporting and audit quality
In October 2023, ASIC published its annual surveillance report. The report highlights areas where the quality of financial reporting and audits can be improved. The surveillance report summarises findings from ASIC’s reviews of both financial reports (180 ASXlisted entities and large unlisted entities) and audit files (15 related audit files...
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Kevin Nguyen

Auditor

Perth

Mountain biking

Clarity Mag

Taming the trail: Risk mitigation in mountain biking and business
As a new convert to mountain biking, it didn’t take me long to realise that riders face an array of obstacles that can send you tumbling down a hill faster than a stock market crash. But what I soon learnt is that the secrets to risk mitigation in mountain biking...
Cameron Bradley

Cameron Bradley

Partner

Brisbane

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Clarity Mag

ESG — the future of reporting
Reporting on ESG outcomes is an increasing expectation of investors, and a legal requirement for some organisations. It can be difficult to know where to start, so, to assist with your transition to ESG reporting, we have consulted experts in this field to glean insights from their experiences. Top tips...
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Clarity Mag

Climate-related financial disclosure
Climate change is recognised internationally as presenting material risks to the global financial system. These risks need to be managed by capital markets, regulators and corporations. They include physical risks of climate change and the transition risks associated with policy, regulatory and technological change brought on by efforts to mitigate...

Eve Drake

Partner

Newcastle

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Clarity Mag

Seeking external valuations on land and buildings in 2023
We are progressing through another pivotal reporting period, being 30 June 2023. It’s at this time (or earlier) when directors of companies determine that external valuations may be needed in support of the carrying value of land and buildings recorded in the balance sheet. These could be either owner occupied...
Kaitlynn Brady Website

Kaitlynn Brady

Partner

Melbourne

Stocksy txp2e5751f2 X1n300 Medium 5068916 2000x1000

Clarity Mag

Enhanced disclosure requirements for charities
A charity registered with the Australian Charities and Not-for-Profits Commission (ACNC) is required to prepare either general purpose financial statements (GPFS) or special purpose financial statements (SPFS). The reforms that were effective from 1 July 2021 that saw the end of SPFS for many for-profit private sector entities did not...
Kym Reilly

Kym Reilly

Partner

Sydney, Newcastle

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