The institute’s head of leadership and advocacy, Rob Ward, said it is important directors and preparers are on top of the new standards right away, since he expects heightened regulator focus on their applications from the start.
Mr Ward also warned applying these standards can involve significant judgements, which are accompanied by significant disclosures.
“These are key areas directors and preparers need to focus on as early as possible in the financial reporting process to ensure the information required can be readily obtained,” he said.
“It can be a challenging exercise to achieve financial reporting quality at a time when several new accounting standards take effect for June year ends,” said Mr Ward.
“The quality of the financial report is key to ensuring confident and informed markets and users,” he added.
While the specific impact of the new standards will depend on the structure and operations of the organisation, which industry it operates in and any contractual agreements in place, assessing the impact of the new accounting standards should be a key priority for all organisations, said the institute.
Few organisations will escape these requirements, according to the ICAA, with most entities having at least one of the following: investments in other entities, employee provisions, fair value measurement or impairment testing requirements.