Awards

Awards

Corporate Governance

Welcomed at the UN Global Summit in Glasgow, the move to create the ISSB intends to fulfill the demand for formalised and consistent reporting in the sustainability space.

Business Recovery and Insolvency

Companies with unpaid tax liabilities or outstanding lodgements, must act now or face the risk of directors becoming personally liable to pay the company’s tax debts.

Awards

PKF is proud to announce the achievements of Director, Andrew Beattie, and Commercial Manager, Stacie Shaw, in being named as finalists in the 2022 Australian Accounting Awards.

Pharmacy

Business Recovery and Insolvency

The Australian Taxation Office (ATO) has sent its strongest message yet in relation to debt enforcement since the commencement of the COVID-19 pandemic. As many as 50,000 directors were recently sent warning letters of an impending Directors Penalty Notice (DPN) and consequently potential personal liability for company tax liability pursuant to the DPN program if they don’t actively engage with the ATO and deal with the tax liability.

Corporate Finance

Superannuation

In this year's Federal Budget, the Morrison Government announced its proposal to extend the 50% reduction to minimum pension drawdown requirements into the 2023 financial year. While the announcement remains a proposal only, we take this opportunity to outline five key superannuation changes which were announced in the 2021 Federal Budget and have recently received Royal Assent to come into effect from 1 July 2022.

Federal Budget

Iain Spittal, Partner of PKF Sydney, shares his views on what we might expect from the 2022 Federal Budget.

Taxation

The ATO have released four tax rulings that will significantly impact on the ability to make trust distributions to family members and related entities. This is one of the most significant developments for the taxation of trusts in over two decades.

Land Tax

With land tax assessments being rolled out this month, it is important to review your assessment to ensure that you are paying the obligated amount.

Growth

The foundations of success in our roles as advisors for clients, and mentors with colleagues is fundamentally built on trust, and our awareness of this is critical in ensuring we deliver to a high standard in both domains.

Fraud

It is a wise thing to remember that a high percentage of fraudulent and corrupt activities that impact businesses are committed by trusted insiders.

Superannuation

In the world of super change is inevitable. As we strive to become more efficient and data-driven, small changes in the short term can make for more streamlined process in the long term.

Tax

With all signs indicating that lockdowns and border closures are a thing of the past, the best time to obtain support from the ATO in relation to your tax debts is now. The team at PKF highly recommends that businesses with escalating tax debts, specifically goods and service tax, pay as you go withholding and superannuation guarantee charge, seek expert advice on the options available to manage its debts.

Information Technology

Before signing up to a cloud service, it is key is understand your organisations requirements around backups and where they do not align with the providers.

Innovation

Whilst I previously focused on technology-based change, change can come in many ways and we should embrace it. We could replace the word change with innovate.

Wealth

An optimal strategy when planning for retirement is to eliminate all remaining personal debt, contribute as much money into super as possible and commence an allocated pension, drawing down a tax-free income to fund your retirement living costs.

Team

Take 5 has shown the team at PKF that there are a lot of things that we may not know about someone, even if we work with them everyday! So we took 5 minutes to chat with our new Managing Director, Bob Bell, to get to know a bit about him.

Leadership

Pharmacy

Since the start of the COVID-19 pandemic staff availability, staff burn-out and staff recruitment have been key concerns for pharmacy owners, particularly those located in NSW and VIC, who have experienced the highest number of COVID-19 cases in the two years since the pandemic began.

Promotions

Audit & Assurance

To emphasise the significance of the leak, the Australian Broadcasting Commission, advised that, if printed and stacked, the pile of documents would exceed four times the size of Sydney's Centrepoint Tower.

Audit & Assurance

Directors and auditors should be given sufficient time to consider reporting issues and to challenge assumptions, estimates and assessments.

Audit & Assurance

Workers are not returning to the workforce or have found jobs elsewhere, and less workers are able to travel from overseas.

Audit & Assurance

There is good news for thousands of charities with reporting obligations to be reduced in 2022, following the changes in thresholds which determine the charity size.

Audit & Assurance

Every business is different and should consider their own reporting requirements before deciding to change.

Business Advisory

Culture

COVID-19

The NSW Government has finally responded to the call for help from small businesses trying to survive the impacts of the COVID-19 pandemic and has announced a $1 billon support package.

Pharmacy

Corporate Finance

There are also a growing number of lenders that are focusing on supporting growth businesses with structures that may include ‘hybrid’ debt/equity solutions, allowing the lender to participate in some “upside” of the growth to support a more ‘aggressive’ lending position.

Australian Tax Office

Off the back of the Top 500 Program, which focused a review of the 500 largest private groups, the Next 5,000 Compliance Program is extending that focus to the next 5,000 largest private groups.

Insider threats

These kinds of threats are very common all over the world, according to a 2021 report, up to 22% of all security incidents come from insider threats.

Australian Tax Office

The ATO has provided clarity on the objective and supportable evidence needed to support real property valuations.

Take 5 has shown the team at PKF that there are a lot of things that we may not know about someone, even if we work with them everyday! So we took 5 minutes to chat with our recently appointed Partner, Daniel Clements, to get to know a bit about him.

Wealth

When it comes to the investment element of financial planning it may seem fairly straightforward at first glance, simply pick some decent investments or shares and sit back and let them do their work.

Staffing

It’s no secret that staffing is an issue for many employers right now. Having spent the last year and half with our borders shut and our movement restricted, skilled workers are in short supply.

At the forefront of the mid-tier market, PKF have taken on 2021 as a time for growth, as its Corporate Finance team welcome Milica Wojno as their newest Associate Director.

Experts in business planning and finance, PKF Sydney & Newcastle have joined forces with brand, product and marketing experts, GHO, to bring a new type of ventures proposition to Australian Startups.

Superannuation

As of 1 November, employees will now be ‘stapled’ to a superannuation fund and there is an obligation for employers to ensure that the right processes are followed to reduce the number of

new super accounts opened when employees transition between organisations.

PKF is the official audit sponsor of the 2021 ProPrint Awards, recognising the top 50 leaders, rising stars, suppliers and veterans of the print industry.

It’s all about expansion and growth for Newcastle business advisory and accounting firm, PKF, as they are set to welcome back alumni, Victoria Dawes, to their specialist tax team as a Principal.

Cryptocurrency

Wealth

With Australian interest rates at all-time lows as part of Australia’s policy response to the COVID-19 crisis as a backdrop, this week saw one of the most anticipated Reserve Bank of Australia (RBA) monetary policy meetings in a while.

Governance

In our experience, not many organisations are aware of the new model and still refer to the Three Lines of Defence Model. Few have formally reviewed the new Three Lines Model and considered its implications.

Aged care

Now is not the time for Residential Aged Care providers to get complacent with ACFI however, remember this will remain the basis for funding for the next 12 months, and whilst assessment processes are changing, comprehensive clinical documentation will help ensure that a Resident is assessed accurately and supports the funding outcome. Amber Witherdin and Cameron Bradley discuss what Aged Care providers should be considering.

Cloud computing

Recently, the IFRS Interpretations Committee (IFRIC) has released decisions regarding the treatment of costs associated with SaaS agreements, to clarify the accounting associated with this style of arrangement.

Terrorism finance risk

Within the last 12 to 18 months, AUSTRAC have repeatedly advised that they expect organisations to go through their Fintel Alliance and other publications with a ‘fine tooth comb’.

Aged care

After 1 July 2024, Aged Care providers will no longer have a right to funding based on bed licences. Tinashe Harris discusses how this will affect intangible assets on their Statement of Financial Position.

Clients of local accounting firm, PKF, got a surprise this month when their engagement letters and communications from PKF came with a certain pink hue.

Directors

Directors need to take action and register for a Director Identification Number (DIN) in order to meet their obligations under the Corporations Act 2001 (Cth) and the Treasury Law Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth).

IT

Businesses should ensure they have processes in place to verify the legitimacy of any request to update details, especially bank and finance details.

Take 5 has shown the team at PKF that there are a lot of things that we may not know about someone, even if we work with them everyday! So we took 5 minutes to chat with 2021 Mark Lonnon Employee of the Year and Commercial Manager, Stacie Shaw, to get to know a little bit about her.

Business advisory

If we focus on the things that we can’t control and burn our energy and resources, we might just miss the business opportunities that disruption can present.

Business advisory

Rather than “surviving” the lockdown or simply planning to return to pre-lockdown life, aim to capitalise on it. Cutting costs only lasts so long.

Tax

To encourage continued business investment in fixed assets, the temporary full expensing of assets measures, which allow an immediate deduction in certain circumstances for the acquisition of depreciable assets, will be extended by a further year to cover assets acquired from 6 October 2020 and first used or installed ready for use by 30 June 2023.

SMSF

There has always been a gender gap issue when it comes to superannuation member balances, however, this has received increased attention in recent years and the ATO have been working with the superannuation industry in an attempt to narrow the gap.

Wealth

No one likes talking about getting old, but waiting until someone has had a fall or has lost capacity to discuss their aged care intentions, will put you in a state of panic as you rush to find a suitable aged care provider.

Business Recovery and Insolvency

It is important that people and businesses seek help quickly when faced with financial distress and inability to repay unmanageable debt.

Business Advisory

In 2016, Federico Collarte and Cibby Pulikkaseril, founders of Baraja came to PKF with a dream to be the leader in autonomous vehicle technology. Today, they’ve secured $40 million to build the next-generation of LIDAR technology to make that dream a reality.

Business Advisory

Pharmacy

Small Business

Promotion

Newcastle accounting and business advisory firm, PKF, have elevated Self-Managed Superannuation Fund Specialist, Daniel Clements to Partner and Newcastle Business Advisory Services’ Hanna Barry and Jackie Marriott to Principal.

COVID-19

The New South Wales (NSW) Government has developed a wide range of support measures for businesses to help them survive this difficult period and continue to add to and amend the eligibility requirements to be able to access this assistance.

IT

Labour has recently introduced a bill to parliament which would require all organisations over $10m turnover to notify the Australian cyber security centre before they pay a ransom to recover access to their files. So what is Ransomware?

Business Advisory

It seems that business owners have been running marathons dealing with unprecedented trading conditions through COVID. Now that we are heading into the new financial year, taking the time to reflect on the past 12 months and setting clear intentions for 2022 can help set your business up for a proseperous new year.   

Superannuation

The minimum percentage employers are required to pay is set to increase over time, an increase of 10% occurred on 1 July 2021.

Taxation

The biggest factor is that Utes are a popular vehicle. The instant asset write off/temporary full expensing stimulus has helped but other Government spending, consumer liquidity and economic optimism have and will continue to play a substantial role.

Mental Health

Throughout history quality stories have been able to transcend generations. Fairy tales, nursey rhymes, and poems have helped us to create and share memories, develop empathy, and most importantly how to overcome adversity, and demonstrate growth and resilience.

Investing

As the saying goes, don’t put all your eggs in one basket. A well-diversified portfolio is what is achieved when assets are allocated effectively across differing sectors to reduce sector risk and stock specific risk.

Business Recovery and Insolvency

Directors should not only consider the financial position of the business, but also the impact it may have on their personal financial circumstances.

Take 5 has shown the team at PKF that there are a lot of things that we may not know about someone, even if we work with them everyday! So we took 5 minutes to chat with Corporate Finance superstar, Chris Weatherall, to get to know a little bit about him.

Accounting

Sometimes loans occur on non-commercial terms and accounting standards are not explicit on the treatment. In these circumstances there needs to be consideration of the commercial substance of the loan, with accounting for any below-market portion as per its substance. 

Accounting

From 1 January 2021 the Payment Times Reporting Act 2020 will require mandatory public reporting for most large businesses to report on its payment terms and times for payments to small business suppliers (businesses with annual turnover below $10m).

Audit & Assurance

Many of the previously well-regarded governance practices like the development of five-year strategic plans have become outdated in the pandemic era.

Audit & Assurance

AASB 3 ‘Business Combinations’ requires an extensive analysis to be performed, in order to accurately detect, recognise and measure at fair value the tangible and intangible assets and liabilities acquired in a business combination.

Audit & Assurance

Education providers are complex organisations, faced with unprecedented challenges by an array of stakeholders, including students, staff, parents, governments (often several layers), community members and the media.  It seems everyone has an opinion on the best way to educate our population, both young and old.

Dry July

PKF’s Audit and Assurance Partner, Martin Matthews, is a huge advocate of Dry July and has participated in all but one year since its establishment in 2008, encouraging workplaces to create teams and friends to get behind the charity.

COVID-19

As Greater Sydney, the Central Coast, Wollongong and the Blue Mountains prepare for the fourth week of lockdown, the Federal and New South Wales Governments have announced a range of supports for both businesses and individuals.

Wealth

Brisbane

Superannuation

With less than a month until the end of the 2020/21 financial year, it is vital to business success that employers are proactively managing these changes and the impact they will have on their business.

COVID-19

Aged care

Financial Controls

The financial operations of small not-for-profits (NFPs) and charities are usually lean so that the entity can apply the maximum resources to its stated objectives. Implementing strong financial systems and controls with small staff numbers can be a challenge but not impossible by following a few basic principles.

Audit standards

The revised standard has been brought about in reaction to increased complexity of reporting in recent years, coupled with continued drive by regulators globally to increase audit quality.

Corporate reporting failures such as the restatement of write-downs of Freedom Foods led not only to significant erosion of shareholder value but an appetite for new auditing standards to be brought in. Enter ASA 540: Accounting Estimates..

Financial reporting

The removal of the reporting-entity concept occurs on 1 July 2021. If you are a June reporter you

need to prepare a GPFS for your 30 June 2022 year (31 December 2022 for the December reporters).

Business

The game hasn’t changed, but the field we play on has. What worked last year might not be the right way anymore. If nothing else, many of us were forced to better embrace technology as we worked from home. Has that led to lasting change for the better?

Jackie has been part of the team at PKF since 2016 and has thrived in her role in Newcastle’s business advisory unit.

At PKF, we think it is important for our clients to ‘get to know’ our team, so we took five minutes to chat with Jackie about her life at PKF and have found out some interesting things about her.

Industry

Business Advisory

Business Recovery and Insolvency

Superannuation

It is no longer acceptable for a company to be purely driven by profits. Fund managers are experiencing strong inflows into their ethically focused products and traditional blue-chip companies are now branching out into renewables following pressure from shareholders to do more around environmental sustainability.

Wealth

A look into how financial advisers develop their investment portfolios for clients and a breakdown of the differences between asset allocation and stock picking.

PKF in Australia has announced the appointment of local Managing Director, Steve Meyn, as Chairman.

First-choice firm

Whisteblowing

Business Advisory

Business Analytics

Risk management

A business’ reputation is one of its greatest assets and can be severely damaged by being ...

Corporate Finance

Business Health

Lessons to be learnt from 2020 for 2021 in regards to new accounting standards

In this radically changing environment, independent and accurate external auditing is more critical than ever in helping determine efficient and effective capital allocation. Most would agree that recent headwinds – not the least being the COVID-19 pandemic – have created a heightened level of general uncertainty. 

Audit & Assurance

In a year which began with the devastating bushfires in the Australia summer, 2020 then took another turn in a way few could have truly anticipated with the COVID 19 pandemic. The extended uncertainty, health crises and economic impacts of lockdowns have touched every company in every sector in some way. Indeed, writing this article in Victoria, many of us are still to fully return to our offices and worksites.

Audit & Assurance

Taxation

Risk management

The prolonged and extreme nature of the challenges of 2020 have left many risk and assurance professionals feeling fatigued, with the holiday period giving them the opportunity to rest, reflect, and reset for the year ahead.

Business Advisory

Business Recovery and Insolvency

Business Advisory

Insolvency

Corporate Finance

Risk management

Almost 12 months on, are you confident your organisation responded appropriately to
the Child Sexual Exploitation intelligence released by the Australian Transaction Reports
and Analysis Centre (AUSTRAC) Fintel Alliance in November 2019?

not-for-profit

The recent reporting season has seen many Not-For-Profits (NFPs) ask the question ‘what impact will the COVID-19 pandemic have on my financial statements?’ The pandemic has significantly increased levels of uncertainty in the economy coupled with inherent levels of uncertainty in financial reports, leading to uncertainty on uncertainty.

The landmark Workpac v Rossato case had caused significant confusion around casual employees and potential leave entitlements following a casual employee engaged by a labour hire firm to work at a mine successfully claiming leave entitlements. Currently, beyond the case law casual employees do not have access to any leave entitlements apart from long service leave (subject to state legislation).

From December 2020, New Zealand’s privacy laws will change. Businesses will have to report for the first time when data becomes inaccessible, as well as when it is accessed by unauthorised parties. This is a significant difference in practical interpretation of the Australian laws to date and will have implications for businesses that operate in either jurisdiction.

Audit & Assurance

The recent decision by the government to extend the insolvent trading relief out to at least 2021 has been greeted with a mixed response – on the one hand, it is hoped that this will allow viable businesses to recover and prevent further job losses, therefore helping protect the economy. Alternatively, the relief may be shielding the “walking dead” businesses which could actually benefit from restructuring initiatives facilitated by the insolvency professionals.

Audit & Assurance

With all of the uncertainty that COVID-19 has thrown upon us, life must move on, businesses need to adapt, children need to go back to school, office environments need to be restored. While the Australian government was aiming for majority of businesses to be back on their feet by July 2020, even with numbers on the rise again, are you, as an organisation, back to work ready?

COVID-19

At the beginning of March 2020, PKF partnered with the Governance Institute of Australia to carry out a survey of governance and risk professionals operating in the Australian market at that time, to identify the key pressure points for them both now and into the future. The survey received close to 400 responses and identified areas that respondents felt they were prepared for and those they felt exposed to.

COVID-19

Asset values continue to be a key focus area for financial reporting regulators – and the negative impact of COVID-19 will mean that previously unaffected businesses will need to consider their asset values for the first time.

Insolvency

Australian Restructuring Insolvency & Turnaround Association (ARITA) announced on 29 September 2020 that it has “become aware of a key timing issue in the COVID-19 temporary insolvency relief measures that has not been widely appreciated.”

It should always be a ‘three-way’ forecast – that is, forecasting profit, cash and balance sheet to give a comprehensive picture.

Tax

This article summaries JobKeeper considerations including key dates and actions for employers, actual deadline in turnover, reference period and payment rate.

Strategic Planning

Business Advisory

There are plenty of hard roads ahead but continued learning, support, dedication, diligence and the odd splash of luck will take us a long way down them.

Superannuation

…the Coronavirus crisis exposed structural weaknesses in Australia's retirement savings system and shows the urgent need for the industry to consolidate.

Client Profile

How Hatch navigated the challenges of the pandemic, leading to the team innovating and evolving their business.

Business Advisory

By having a financial plan in place you can measure, track, and plan your business performance as the economic climate changes

Corporate Finance

The good news is that investors, lenders and acquirers are abundant and active in the Australian market and there are vast amounts of capital waiting to be deployed.

Wealth

The recovery in US share markets has been stronger than that seen in the rest of the world, despite the US being in a very deep recession. This recovery has been primarily driven by the heavy concentration of technology companies listed in US markets.

Business Recovery and Insolvency

Taxation

The Victoria Government announced on 13 September 2020 an injection of $3 billion to assist businesses to survive the ongoing restrictions and prepare for COVID Normal business. Grant applications open on Friday 18 September 2020.

Taxation

The JobKeeper payment will continue to be available to eligible businesses and not-for-profits until Sunday, 28 March 2021. There are some significant changes to the rules. We have broken them down so that you are clear on how they impact you.

Wealth

Super affects every single one of us. It sways government policy, it influences voters, it creates a comfortable retirement for many, it also currently helps many out of a hole with cash flow concerns, and it’s not going anywhere.

Whisteblowing

72% of policies reviewed did not provide sufficient information about the practical steps that would be taken to protect confidentiality or the legal protections available for eligible whistleblowers; a key objective of the new legislation.

Asset values continue to be a key focus area for financial reporting regulators – and the negative impact of COVID-19 will mean that previously unaffected businesses will need to consider their asset values for the first time.

With all of the uncertainty that COVID-19 has thrown upon us, life must move on, businesses need to adapt, children need to go back to school, office environments need to be restored. While the Australian government was aiming for majority of businesses to be back on their feet by July 2020, even with numbers on the rise again, are you, as an organisation, back to work ready?

As we all work towards a new-normal of social-distancing, and where communities are disparate and in desperate need of feeling re-connected, the sports industry has a unique opportunity to be the driving force behind this. Strong leadership and governance will place it in pole position as this test of endurance henceforth continues.

On Wednesday, 20 May the Federal Court upheld the findings in Workpac v Skene regarding casual employees and has left many employers feeling exposed and uncertain. The Workpac ruling is not a new one. The Workpac v Skene decision was handed down in 2018 but in 2020, it was challenged again when Workpac brought a second case to the Federal Court, Workpac v Rossato.

NFPs

Insurers and in particular financiers, are increasingly making enquiry of business to ensure that they have specific Pandemic related plans in place to address not only the unique risks posed by COVID-19, but to also address the risk of any further pandemic related events into the future. This could become a mandated part of doing business in the future.

Be more vigilant on the look the out for phishing emails and sites. Empower them with the knowledge of the risk so they know how what to look out for. The Coronavirus scare is the perfect mechanism for cybercriminals to leverage and trigger that emotional response.

The pace and severity of COVID-19’s impact had caught all of us in business by surprise and challenged the way we have traditionally operated. It also presents an amazing opportunity for business to challenge the traditional paradigms.

The survey has revealed that almost 40 per cent of businesses are not regularly testing their risk and crisis plans — leaving them exposed and under-prepared for major crisis.

WeWork is a classic example of an organisation transitioning from purely founder-led or director-driven operations to well-rounded, balanced businesses where management and ownership are appropriately separated.

If an SMSF tax return for 30 June 2019 and/or prior years is outstanding for more than 14 days, the ATO will now remove the SMSF’s compliance status from Super Fund Lookup. This status will remain until any overdue lodgements have been brought up to date.

The change in the law means that a taxpayer who is a foreign resident at the time of the CGT event can no longer claim the CGT main residence exemption, unless, at the time of the CGT event the taxpayer had been a foreign resident for less than six years and one of three life events applies.

The young Royal’s desire for financial independence has got people asking what ‘financial independence’ really is and is it achievable for ordinary, run-of-the-mill folk like us?

Audit & Assurance

Understanding a business’ access to financial resources is essential in determining whether it can persevere through the temporary business interruption caused by the bush fires.

It is best not to perform annual assessments to align your revenue with the required policies and instead change your processes to reflect the changes. Performing adjustments when needed for reporting can create an unnecessary burden, as essentially you are maintaining two separate sets of accounting records.

Understanding the valuation impact of Share-based Payments before they are issued or agreed as part of a transaction is an important consideration before entering into a binding agreement regarding the terms of any equity issued in lieu of cash payments.

It is estimated that the introduction of double dispensing will reduce the gross profit of the average pharmacy by $85,000 should the proposed changes come into play.

Integrity in business is achieved and sustained by the example set by leaders who promote and cultivate a positive workplace culture. This four-part series explores the key role that communication and education play in raising awareness and the successful implementation of an ethical culture.

Audit

In this radically changing environment, independent and accurate external auditing is more critical than ever in helping determine efficient and effective capital allocation. Most would agree that recent headwinds – not the least being the COVID-19 pandemic – have created a heightened level of general uncertainty.

With the Australian Transaction Reports and Analysis Centre (AUSTRAC) launching legal action in November against Westpac accusing them of breaching Australia’s anti-money laundering and counter-terrorism finance laws over 23 million times, stating, "These contraventions are the result of systemic failures in its control environment, indifference by senior management and inadequate oversight by the board," this has once again brought the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act into the spotlight.

The Australian Stock Exchange (ASX) is always reviewing and implementing continuous improvement to their Listing Rules and Guidance to ensure that adequate information is being provided within the market to provide transparency.

I believe that people genuinely think that they are fundamentally good, regardless of whether we perceive them to be otherwise. That they are doing the best they can with the resources they have and don’t seek to do any harm. In the context of wage theft, no individual or company views their own wage theft as malicious. It is often this nuance that gets left out of public debate in a world of outrage-fuelled media.

The next round of accounting standard changes is looming over the Not-For-Profit (NFP) sector but is everyone ready?

Travelling so far for a conference, you want to make sure you come away with valuable new insights and a spring in your step – and we weren’t disappointed!

So, the message is fairly clear – just because the ATO stops chasing or the debt no longer appears on your account does not mean the debt will not reappear when circumstances change.

After the Special Purpose Financial Statements removal, the veil of reduced reporting is lifted, and financial information will become publicly available. Many mum and dad companies believe this is a privacy risk.

The Business Processing Outsourcing (BPO) industry has grown significantly over the last five years, it is expected to reach $343.2 billion in global annual revenues by 2025.

If your SMSF is heavily invested in one asset or a single asset class, you need to review your current SMSF investment strategy to make sure it properly documents the basis for your decision to hold a significant asset in your SMSF which may lack liquidity and diversification.

Business owners acknowledged that technological trends will have a big impact in the future, however, two thirds of all businesses believe that they have knowledge and skills gaps when it came to using technology to improve their business.

Following our article on ‘Interrogating Integrity’ and the importance of culture in our last edition of Clarity, many Directors are seeking to understand their organisational culture and non-financial risks. As a result of issues raised by the Hayne Royal Commission and the Aged Care Royal Commission, some are asking how, respectively, Directors failed to know about the appalling treatment of clients by financial services providers and residents in some aged care facilities.

Reform is upon us and some of the following topics may have some in a head spin!

If you hold an Australian Financial Services Licence (AFSL) and need to apply AASB 16: Leases, then you need to double check your net tangible assets! 

As traditional banks tighten their lending appetites, a new wave of lenders have emerged to plug the gap. While these alternate financiers appear to be more welcoming of new to bank customers, they are known for their rigorous review and vetting process. So, as a business owner or manager, how do you put your best foot forward when applying for new finance?

Businesses across the world are being bombarded by a range of cyber scams with one of the most prevalent being Business Email Compromise (BEC), also known as ‘CEO Fraud’. Find out what needs to be done. 

You will no longer have to give your employees a payment summary for the information you've reported and finalised through Single Touch Payroll.

Going into business is hard work. Most businesses start small but are wonderful for the economy. SMEs create innovative solutions to problems, care about service, pay their taxes and small business alone provides almost 4.8 million jobs for the community. Isn’t it fair that the rewards include more money and more free time for the owner?

Before investing in a large illiquid asset like real estate it is critical to consider your current and future SMSF cash flow needs.

It remains to be seen if the RBA’s interest rate policy will be effective in delivering on this aim. What is certain, though, is that it is now becoming very difficult for conservative investors to earn a reasonable return on their cash and term deposits.

Fortunately, the alternative view of the future sees our country leveraging off our strong economic base, creating an economic and tax environment that stimulates.

It is common for businesses to think that it wouldn’t happen in their business, but the reality is that fraud is happening to them and it can happen anywhere. The risk of not having a hotline is too high, both financially and culturally.

The intent of the measure allowing the ATO to disclose such information is to support more informed decision-making within the business community and banking and finance industry, by making overdue tax debts more visible.

Non-public sector Australian not-for-profit (NFP) entities will soon have the option to recognise the benefit of voluntary services received in their profit or loss account. What does this mean for those in the sector, and should boards be considering implementation of this choice?

General provisioning of debtors was removed many years ago, never to return, or so we thought.

The Australian Accounting Standards Board has been busy over the last few months which has resulted in some proposed changes to accounting standards being released for comment. 

Foreign incorporated companies that are controlled by Australian groups should assess their Australian residency status to identify any risks and remedial action that may be required, especially where there are potential decision-making influencers in Australia.

While the modified retrospective approach with practical expedients is the easiest of the three approaches to implement, it is undoubtedly the one that most reduces comparability of information in both current and future periods.

There are around 600,000 SMSFs in Australia today with over 1.1 million Australians who are members of their own SMSF.

Though most Directors would not knowingly participate in illegal phoenixing, moving assets to protect a Director’s personal financial wealth when a business is facing liquidation, could be viewed as phoenixing and both the Director and their adviser may now be held liable.

For most, this money printing machine just sits there at home, unprotected and uninsured…You guessed it – this machine is YOU… What would you do if you could no longer meet those large mortgage repayments?

A business needs to articulate the position of a good investment. The more risk for an investor (in this case the bank), the higher the reward they will expect (in this case the interest rate).

In order to effectively implement a whistleblower hotline, a company must be trained effectively to professionally receive the disclosure of sensitive material and ensure the effective management of such matters.

Under the new leasing standard, entities will be required to recognise on the balance sheet the liability relating to all leases (including those formerly classified as operating leases) along with associated right of use assets (ROUs) for each of these leases.

Ever since I was a young lad studying at university, and training to be a Chartered Accountant in the early 1990s, the concept of “independence” and “objectivity” have been the most important principles underpinning the audit function. And without “actual” or “perceived” independence, the value of our audit opinion would be considered worthless.

The Australian Accounting Standards Board (AASB) is currently tackling one of the biggest financial reporting issues facing Australian companies at the moment.

On exit, and provided certain conditions are met, any capital gains realised by an Australian company from the disposal of shares in a foreign subsidiary may be disregarded in Australia.

A peppercorn lease refers to leases of assets where the required lease payments are significantly below market value.

The way business leaders manage their time impacts not only their own effectiveness and success but the success of their whole organisation.

Many people don’t know about investment bond tax structures which allow wealth to be accumulated on a flat tax rate on earnings at 30%.

Contribution limits prevent me from putting more into my super now…. what do I do?

In a Private Equity Funds sale scenario, sellers need to understand that, unlike a full exit in a traditional ‘trade sale’ situation, this type of transaction is generally a two-step process that requires their ongoing commitment.

Anyone who had a mortgage in the early 90s will be quick to tell you about the 17% interest rates (or worse) that they were paying on their mortgage at that time.

Three common traits have been found to be present in fraud cases. This has come to be known as the Fraud Triangle... made up of pressure, opportunity and rationalisation.

Illegal phoenixing

Whilst the tidal wave of regulation, governance and accountability continues to grow, the Federal Government has announced the introduction of new laws to combat illegal phoenixing and to focus on the accountability of directors and their advisers.

After much anticipation and speculation, the Australian Securities and Investments Commission (ASIC) has released their Summary of 2017-2018 levies.

There are a number of disclosure matters that you need to consider in relation to their impact on the interim half-year financial report.

A peppercorn lease refers to leases of assets where the required lease payments are significantly below market value.

IFRS 9 introduces a number of choices to the application of hedge accounting, and its overall objective is to improve the value of financial statements in decision-making by capturing the impact of an entity’s risk management strategies on its financial operations.

Division 7A is an integrity rule that is designed to prevent shareholders from using private company profits without paying tax at their marginal tax rates.

As we approach the Christmas break, it is a great time to sit back and reflect and consider how your organisation can improve in 2019.

From 1 July 2018, some SMSFs are required to now report events on a quarterly basis within 28 days of the end of each quarter.

The introduction of the new law is a timely reminder to all business operators to regularly review supply agreements and the contracts that govern your business arrangements with customers and suppliers alike.

September 2018 marks 10 years since the Global Financial Crisis (GFC), an event that had a major impact on everyday Australians and how they now view the financial services industry.

The majority of accountants provide compliance services the statutory bodies require – but we believe true advisory means taking business owners where they want to go, rather than just reporting on where they’ve been.

It’s imperative that change begins at the top and leaders effectively communicate new policies as well as act upon them. An ethical and transparent leadership not only breeds a positive and open internal culture but also helps deter misconduct in the long-term.

Collaboration is key to success when setting goals. Organisations are more likely to achieve goals when key staff and personnel are involved in the decision-making process from the start.

A Whistleblower Hotline provides a discreet method for the whistleblower to seek assistance which can ensure your business maintains its integrity and reputation.

The mood following the on-going Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry, suggests that ASIC may be prepared to take punitive legal action where there is non-compliance with the law and that includes accounting standards.

The initial market analysis suggests that the way Leases are currently structured, may drastically change, given the impact on key metrics such as increasing Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)…

Having a crisis management strategy in place is beneficial but employing it should always be a last resort, these situations are entirely avoidable if the right steps are taken.

When stacked against competition, does your business stand out? Can you articulate why it should stand out?

In the case of a Self-Managed Superannuation Fund (SMSF), the trustees at the time of death of the member have ‘control’ over where the member’s benefits are paid, irrespective of what the will says.

Financial models have continuously evolved over the last three decades to become one of the most important financial tools in the modern business world.

The changes [to GST laws] now put the onus of collecting and remitting the GST on the purchaser and the risk of non-collection is reduced.

Life moves on and some standards change with time… But common courtesy is something that should never become uncommon – it’s all about respect.

ASIC will be scrutinising financial reports this reporting season to ensure that boilerplate disclosures are not continuing to be made, with no impact assessment.

As an investment tax credit is accounted for either as a government grant or as income tax or as both but alarmingly it falls outside the scope of both relevant accounting standards AASB 112 Income taxes and AASB 120 Accounting for Government Grants and Disclosure of Government Assistance.

Of the 54 inquiries made by ASIC over financial reports for 30 June 2017, 20 related to the impairment of assets. 

The 2018 governance landscape is being dominated by a number of major events which have Boards and management teams racing to ask – “tell me we don’t do that, do we?”

Any amount required to be withheld at or before settlement will need to be paid to the Australian Taxation Office by the purchaser. The vendor will be entitled to credit for the amount paid to the ATO by the purchaser when the vendor lodges its next business activity statement.

An effective internal audit not only identifies areas of waste that could be eliminated but considers ways the business can improve its existing processes.

Only once you’ve articulated your goals should you take the next step: to review your business and make sure it is synchronised with achieving these goals.

With SMSF members still working through the wide-reaching and complex superannuation changes which took effect from 1 July 2017, this Federal Budget will provide much needed stability while looking to reduce costs for SMSFs and prove additional flexibility.

Careful planning, preparing your business for transition and the early involvement of management will ensure a more successful transaction.

The message here is to ensure you have a system in place to deal with incoming correspondence where your registered office address is not your principal place of business, or that of your accountant.

On previous trips I have seen…some very noticeable phenomena; the massive support for start-ups, the huge investment in data capture and analysis…and now a need to show customers how and from where you source the elements of your product or service.

Every business is vulnerable to the threat of fraud, and whilst we often operate in a “high trust” environment, it is also timely to remember "trust is not a control—it is an emotion."

Do you know all the locations where your data resides? It might be embedded in supplier records, websites, excel files, emails and HR records. But are there more? Missing one location can prove fatal!

When companies are looking at acquiring businesses or companies from each other their first request is to be provided with detailed information on the target via a secure data room. So, the GPFR is never used to make investment decisions, which of course highlights the potential irrelevance of information in such a report.

Adopting the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations should not be seen as a compliance headache, but as a chance to mitigate the risk of doing business with inappropriate parties, and to protect your organisation’s reputation.

Adopting the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations should not be seen as a compliance headache, but as a chance to mitigate the risk of doing business with inappropriate parties, and to protect your organisations’ reputation.

If you want to scale back your hours but retain your business, you’re going to need to identify, motivate and build up the next leader(s) – preferably someone who can take the business to a higher level.

Cryptocurrency is not specifically disallowed as an investment in a Self-Managed Superannuation Fund (SMSF). If it is to be included as an investment in an SMSF there are many rules to contend with to not breach the superannuation laws (Superannuation Industry (Supervision) Act (SIS Act)).

Despite recent corrections the medium-term outlook for both the Australian Stock Exchange (ASX) and National Stock Exchange (NSX) continues to be positive. The long-term outlook remains strong and both equity capital markets continue to provide a good opportunity for companies to list.

The introduction of director identification numbers is a welcome improvement to Australian business and will improve regulators data matching abilities in identifying and removing the small number of directors who do not observe their duties.

Offshore Outsourcing is not for everyone, but we have found it an excellent option for meeting the demands of changing technology and expectations. The opportunity for our staff to experience a different country and culture first hand is a bonus.

Many companies use an outsourced whistleblower hotline that provides an independent, fully resourced 24/7 service staffed by experienced investigators who not only provide the right level of support to the whistleblower, but also ensures that the right questions are being asked and appropriate evidence is secured.

Poor data quality is cited by so many businesses as the key reason that they don’t try to extract more value from their data. But is poor data quality really an impediment, or is it rather an indicator of a great opportunity for the business? Is your data glass half-full or half-empty?

If you buy an asset to use for business purposes and it costs less than $20,000, you can immediately deduct the business portion of the cost in your tax return.

We live in a world where data is all around us – collected as we use our personal devices, as we create and sell in our workplaces, and by government through statutory reporting.

Taxation

Risk Management, Governance & Culture

Grants

As we enter a new period of restrictions and disruption, staying in touch with each other is paramount to ensuring we all receive the support we need. Whether that be financial, business or people related.

This was long before the NSW Anti-Discrimination Act came into force in 1977, and fair to say gender discrimination was rife.

The ACNC Act states that the aim of the external conduct standards will be to give the public confidence that funds sent outside Australia by registered organisations are reaching legitimate beneficiaries and being used for legitimate purposes; and that both funds sent, and activities engaged in outside Australia will not contribute to terrorist or other criminal activities.

As a benchmark, revenue growth rate plus profit margin should exceed 40%. Young companies are expected to beat that mark with rapid growth. More mature companies, where growth has tapered off, expect to grow profit margins to hit their metrics.

A business strategy will facilitate decision making within your business so you’re focusing your time and efforts on achieving your goals and getting to where you want to go. 

BEC scams generally occur when a hacker gains access to a business or a business’ supplier’s email account and mimics a legitimate email address using a domain similar to the targeted business’ actual domain.

The most common mistake we see is the lack of planning leading up to a known quiet period, which results in our clients having to implement last minute, unideal, “firefighting” strategies to manage overdue and upcoming creditor payments.

Cryptocurrency

Cryptocurrency popularity continues to rise which means it will remain a focus area for the ATO.

"Your support has meant even more in a year where we have experienced a huge disruption to life as we know it, and our world has felt extraordinarily fragile."

Corporate Finance

PKF’s independence, experience, commercial acumen, attention to detail and objectivity enabled them to provide QMS with detailed advice on several issues. 

Business Advisory

 PKF considers itself a part of the Cellmid team, guiding its growth in the global market and assisting with development of important medical products through our advisory services.

Business Advisory

PKF works with family businesses to help create the balance family and their business needs - planning for succession, implementing governance frameworks, and policies and procedures to ensure long-term success.

Business Advisory

“PKF is our go-to for business advice, which I guess has proved to be a great decision as we have expanded exponentially!"

Business Advisory

“PKF is an amazing foundation for our business – they make sure we make prudent decisions with investments and various other decisions.”

Taxation

“PKF understand my position as a start-up…and for me, this means that we’ve been able to succeed earlier.”

Initial Public Offering

Business Advisory