Mid-tier warns on financial reporting changes

Mid-tier warns on financial reporting changes

Warning

A mid-tier accounting firm has flagged that advisers must be across recently announced revisions to the new financial reporting arrangements for residential aged care and home care package providers.

Last year, it was announced that new financial reporting arrangements for residential aged care and home care package providers were being introduced, however the department of health has now outlined a revision to one of the requirements.

The main change to note is that the Annual Prudential Compliance Statement (APCS) will now still need to be audited, contrary to the Department’s advice previously provided to the sector in relation to the Aged Care Financial Report (ACFR).

The ACFR will now involve a single template, consolidating the APCS, Survey of Aged Care Homes, Home Care Financial Report, and Short Term Restorative Care Financial Report.

“BDO welcomes changes designed to improve financial reporting efficiency for this sector, particularly in relation to the consolidations of reporting requirements and flexibility to include mandated line items in their General Purpose Financial Report,” said Kim Colyer, BDO audit partner.

“Despite this, providers must be wary of the choices they make regarding the treatment of mandated line items in their GPFR for compliance with Australian Accounting Standards.”

Ms Colyer said that advisers to clients in this space should provide assistance to ensure they meet relevant requirements.

Ms Colyer said it’s important that advisers are aware the new arrangements are mandatory for all residential and packaged home care providers for use in the 2016-17 financial year.

Providers who report on a 30 June financial year-end basis must submit their reports under the new arrangements by 31 October 2017.

Mid-tier warns on financial reporting changes
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