Description
The Letter Detailing Changes in Accounting Policies Template is built exclusively for Australian accounting and taxation professionals to explain, justify, and document policy changes in a way that boards, auditors and regulators immediately recognise. It sets out exactly what changed, why it changed, and how it affects the financial statements, aligning the narrative to Australian Accounting Standards, ATO guidance and APESB requirements. Clients receive a polished, client-facing record that improves understanding, supports audits, and keeps tax and reporting timelines on track.
Best features & benefits
• Customisable via easy-to-use merge fields (logo/letterhead, practice and client details, dates and contacts) so you can brand and issue in minutes.
• Complete, client-friendly structure—prebuilt sections for Overview of Changes, Basis for Changes (AASB/ATO/APESB), Impact on Financial Statements, Retrospective Application & Disclosure, Recommendations & Next Steps, Acknowledgement, Contact, Useful Links so nothing material is missed.
• Standards mapping made explicit—ready references to AASB 108 (policies/estimates/errors & retrospective application), AASB 15 (revenue), AASB 16 (leases), AASB 102 (inventories), AASB 112 (income taxes), and AASB 136 (impairment) to anchor each change.
• Worked policy-change table—columns for Policy Area, Previous Policy, New Policy, Reason, Effective Date with examples (e.g., invoicing to performance-obligation revenue under AASB 15; expensing to right-of-use assets under AASB 16; FIFO to moving-average under AASB 102; deferred-tax balance-sheet method under AASB 112; CGU impairment under AASB 136).
• Impact matrix that drives clarity—lays out the effect on profit or loss, assets, liabilities, and whether a retrospective adjustment applies, so reviewers can see consequences at a glance.
• Retrospective application & disclosure prompts—explicit cues to restate comparatives and attach reconciliation journals and narrative notes consistent with AASB 108.
• Includes relevant citations to industry and governmental bodies—an ATO block covering income-tax reporting, GST timing/implications, and capital-allowance flow-ons when leases are capitalised.
• Professional standards baked in—references to APES 205 (Conformity with Accounting Standards) and APES 110 (Code of Ethics) strengthen quality and independence cues in your file.
• Actionable “Recommendations & Next Steps”—review updated financials, align BAS/GST and tax filings, update internal SOPs/governance and schedule a follow-up consultation.
• Optional client acknowledgement—signature block to formally record understanding and acceptance, improving governance and audit trails.
• “Useful Links” space for curated resources or related services without cluttering the core letter—ideal for client self-service and reducing clarification emails.
• Delegation-friendly—clear headings and fill-in tables make it easy for junior staff to prepare and for partners to review and approve quickly across engagements.
Conclusion
Purpose-built for Australian accounting professionals, this template is a time-saving, informative, process-streamlining tool for standardising how you communicate changes in accounting policies. By combining standards-anchored explanations, a worked change table, an impact matrix, ATO and APESB references, practical next steps, and an optional acknowledgement into one reusable letter, it helps you capture the right confirmations on the first pass, reduce review cycles, and move efficiently from policy change to compliant reporting—again and again, every time you onboard a new client or update an existing one within your licensed organisation only.
