Future changes to accounting standards should be at the top of the list for preparers of financial reports, auditors and audit committees in the lead up to the financial year end, according to latest guidance from the Institute of Chartered Accountants in Australia (the Institute).

But Lee White, executive general manager at the Institute, says that broader economic indicators and international issues should also influence professional judgement when preparing financial year end statements.

As the 30 June 2011 year end approaches, the Institute has released Essential guidance for the June 2011 reporting season, which highlights 10 key issues that may impact reporting and forecasting.

“With the financial year end upon us, we’re encouraging our members to look beyond their immediate reporting environment, and reflect on overall issues that have impacted global capital markets.

“Catastrophes such as the recent natural disasters, for instance, interest rates and exchange rates need to be considered when carefully forecasting short-term and long-term debt/financing,” says Mr White.

The 10 issues, with supporting commentary, include: new and amended financial reporting standards, new auditing standards, interest rates and exchange rates, oil prices, Gross Domestic Product (GDP), carbon price, mining boom, cautious consumer, natural disasters and European debt.

Bi-annually the Institute provides essential guidance to preparers, auditors and audit committees to assist them in their roles as professionals. This is part of an ongoing body of work produced by the Institute that examines the issues that have impacted financial reporting periods, while also, examining areas that require attention during the next six months.