CA ANZ flags concerns with delayed payment times guidance
The late timing for updated guidance on the payment times reporting regime will cause headaches for finance professionals, major accounting bodies have said.
Many finance professionals have expressed concern about the delay in the finalisation of updated guidance for the revised payment times reporting regime with the new reporting to commence on 1 January, according to CA ANZ and CPA Australia.
The government passed amendments to modify the existing Payment Times Reporting Scheme in the middle of this year.
The amendments are designed to incentivise large businesses to improve their payment times and implement a shift to consolidated reporting under Australian accounting standards to improve data quality.
The professional bodies noted that the finalisation of the draft and supporting guidance for the revised regime was expected sometime in December, ahead of a period when many businesses will close their offices for the holiday period, returning after the 2025 effective date.
“As existing processes and accounting software modules will need to be updated or altered to generate appropriate data to meet the new reporting requirements - particularly for consolidated reporting and reporting of controlled entities - some entities will struggle to meet this timeframe,” CA ANZ and CPA Australia said.
“These changes are just one of many that some entities must juggle to find resources to complete ahead of the effective date.”
The professional bodies said the regulator would need to work collaboratively with reporting entities as they navigate these changes and continue to provide an educative approach to reporting, particularly as entities upskill their employees and update their systems and processes.
The submission noted that reporting entities with overseas subsidiaries that have not been required to be included in reporting up to 1 January 2025 may experience delays in obtaining relevant, quality reporting data due to the necessary upskilling to meet reporting requirements.
“In addition, reporting entities that represent large, consolidated groups will be required to translate millions of lines of data for reporting which would require resources and time, which many reporters may not be able to dedicate,” the professional bodies said.
“We encourage the Regulator to proactively engage with entities that will be undertaking consolidated reporting to understand the practical challenges to reporting and to consider circumstances where consolidated groups may require additional time outside the in-built automatic extension in the new Payment Times scheme.”
About the author
