Wage underpayment FAQS

Wages underpayment has become a pressing issue in the Australian economy. Several large businesses have admitted to having (often inadvertently) underpaid staff.

The Australian Accounting Standards Board has released Staff FAQs – Remuneration underpayments to remind entities of the standards that might apply when accounting for underpayments.

Three questions posed and answered are:

• In what year should the payments be recorded?
• How do I determine whether any prior-year payments are material and require a restatement of the financial statements? and
• What disclosures are required?

View the document www.aasb.gov.au/admin/file/content102/c3/FAQ_WageUnderpayments_07-20.pdf

If you would like to discuss this further with one of our assurance team members, please contact us.