Chartered Accountants Australia and New Zealand (CA ANZ) and CPA Australia have voiced their concerns about the updated guidance for the Payment Times Reporting Scheme (PTRS).
The PTRS is designed to enhance payment times for small businesses in Australia.
It mandates that large businesses and certain government enterprises submit reports on their payment terms and practices.
These reports are required to be submitted twice a year, covering each half of the income year.
The two associations emphasise the timing and implementation challenges, particularly with the latest guidance’s finalisation expected in December 2024, just before its effective date of 1 January 2025.
This timing coincides with many businesses closing for the holidays, complicating the implementation of necessary changes.
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By GlobalDataStakeholders have expressed worries about entities with overseas subsidiaries facing difficulties in obtaining relevant data.
Additionally, large, consolidated groups may struggle with translating extensive data for reporting, the associations reported.
These entities may require additional time beyond the automatic extension provided in the new scheme to comply effectively.
The updated guidance is said to lack sufficient illustrative examples for consolidated entities.
CA ANZ notes that: “As existing processes and/or 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. These changes are just one of many that some entities must juggle to find resources to complete ahead of the effective date.
“We encourage the Regulator to continue to work collaboratively with reporting entities as they navigate these changes and to continue to provide an educative approach to reporting, particularly as entities upskill their employees and update their systems and processes.”
The Regulator is encouraged to collaborate with the Australian Accounting Standards Board (AASB) to streamline the application approach and provide clearer guidance.
Earlier in November 2024, CA ANZ responded to a report from the Parliamentary Joint Committee into Ethics and Professional Accountability.
The report addresses structural challenges in the audit, assurance, and consultancy industry, offering recommendations to improve ethics, accountability, and transparency within the accounting profession.
