NZASB Communiqué 2011-10: 21 December 2011
The New Zealand Accounting Standards Board held its 5th meeting in Wellington on 15 December 2011. The principle focus of the meeting was the further development of draft Standards for Tier 1 and Tier 2 public benefit entities. Click here to access the papers discussed at the meeting.
Accounting Standards Framework
The Board continued its work on developing draft Standards to support the XRB Board’s proposed Accounting Standards Framework. Final decisions will only be made once the XRB Board considers comments from constituents and makes a final decision on the Framework.
PBE Standards Development (Tiers 1 and 2)
The Board continued its work on reviewing draft PBE Standards based on International Public Sector Accounting Standards (IPSASs). These standards are being developed to allow the Board to implement the XRB Board’s proposed suite of standards for public benefit entities (should those proposals be confirmed).
The Board noted a number of issues that will require further consideration before draft PBE Standards can be issued for consultation, including the need for transitional provisions that recognise the issues facing entities transferring to the PBE Standards from NZ IFRSs, Old GAAP or other bases for reporting. The Board anticipates considering these issues at its first meeting in 2012.
PBE Standards (Tier 3 Simple Format Reporting)
The Board noted the report of the ASRB’s Not-For-Profit (NFP) Simple Format Reporting Working Group which was referred to the Board by the XRB Board.This report will be an important input into the work of preparing the draft Simple Format Reporting Standard.
The Board also noted the work underway to support the development of the draft standard, especially the assistance of entities in the public and not-for-profit sectors.
Standard approved by the NZASB
Under Section 33 of the Financial Reporting Act 1993 (as amended in 2011), the final step in the process of issuing standards is the making of a determination by the XRB. The Board approved for issue New Zealand Equivalent to IFRIC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine (NZ IFRIC 20) for application by for-profit entities and forwarded it to the XRB for the issue of such a certificate. Once the certificate is received, the standard will be gazetted and placed on the XRB website. A separate communiqué will be issued when this occurs.
IASB Exposure Draft ED/2011/4 Investment Entities
The Board considered a draft submission to the IASB on ED/2011/4 Investment Entities. The final submission to the IASB will be approved out of session by a subcommittee of the Board.
Annual Improvements Process
The Board noted the tentative issues that are to be included in a forthcoming exposure draft on annual improvements to International Financial Reporting Standards (IFRSs). The Board agreed the process for its exposure when issued by the International Accounting Standards Board (IASB) in the first quarter of 2012.
Items deferred to next meeting
An update on the IASB’s Financial Instruments project and consideration of ways to support preparers in managing the disclosure requirements in NZ IFRSs will be considered by the Board at its meeting in February 2012.
Christmas Greetings
As this was the Board’s last meeting for the year it would like to take this opportunity to wish everyone a very Merry Christmas and a Happy New Year and to thank all its constituents for their support and input during the first months of the Board’s work.
Next meeting
The next meeting of the NZASB will be in Wellington on 16 February 2012. It is anticipated that the major focus of the meeting will be on the development of an Exposure Draft for the transition suite of PBE Standards.