This NZASB Update provides you with an overview of the New Zealand Accounting Standards Board’s recent activities, any new standards or interpretations it has issued, as well as other matters of interest.
New standards and amendments
Amendments to XRB A1 Application of the Accounting Standards Framework
The External Reporting Board (XRB) has recently issued amendments to XRB A1 Application of the Accounting Standards Framework.
XRB A1 sets out the accounting standards framework for entities that have a statutory obligation or that opt under an enactment to prepare financial statements or financial reports that comply with GAAP or non‑GAAP standards issued by the XRB.
These amendments to XRB A1:
- clarify that the size criteria for a PBE to report in accordance with Tier 4 PBE Accounting Requirements are based on the total combined operating payments of the entity and its controlled entities; and
- update XRB A1 to reflect the end of the transitional period for issuers of securities currently provided under the repealed Securities Act 1978 and the repealed Financial Reporting Act 1993.
The amendments are effective for reporting periods beginning on or after 1 January 2018, with early adoption permitted, for the amendment relating to Tier 4 PBEs.
Seminar on IASB: Current Work and Emerging Issues with Sue Lloyd (IASB Vice-Chair)
27 November 2017, Wellington
Victoria University of Wellington – Centre for Accounting, Governance and Taxation Research in association with the XRB is hosting a free seminar exploring the recent key developments and the current work programme of the International Accounting Standards Board (IASB).
The seminar will include presentations from Sue Lloyd, Charles Hett (NZASB Board member) and Anthony Heffernan (Director of Accounting Standards at the XRB).
NZASB December Board meeting
14 December 2017, Wellington
The Board intends to discuss a range of topics affecting both PBEs and for-profit entities.
Agenda items include IPSASB CP Accounting for Revenue and Non-exchange Expenses, IPSASB ED 62 Financial Instruments, IPSASB ED 63 Social Benefits, some limited scope amendments to Tier 3 and Tier 4 PBE Accounting Requirements, and proposed RDR concessions for NZ IFRS 16 Leases.
The NZASB meetings are open to the public.
You can access the public agenda, meeting papers and register to attend an NZASB meeting. We will upload the meeting papers to the XRB website during the first week of December.
On the radar
Are you ready for the new standards on revenue and financial instruments? – Some helpful resources
Two new accounting standards are about to become effective for for-profit entities applying NZ IFRS. NZ IFRS 15 Revenue from Contracts with Customers and NZ IFRS 9 Financial Instruments are effective for annual periods beginning on or after 1 January 2018.
Both NZ IFRS 15 and NZ IFRS 9 are based on the equivalent IFRS® Standard. The IASB – which is responsible for developing and issuing IFRS Standards – has prepared some useful information to support implementation and application of these standards.
This is available on the IASB’s website.
In case you missed it...
IASB issues non-authoritative guidance on Making Materiality Judgements
The IASB has published IFRS Practice Statement 2: Making Materiality Judgements. This Practice Statement provides entities with guidance on how to make materiality judgements when preparing their IFRS financial statements.
This non-mandatory guidance could be very helpful to preparers when determining whether the recognition, measurement or disclosure of items could be material.
Correction to NZASB Update – Effective dates of 2017 Omnibus Amendments to NZ IFRS
The NZASB Update we sent on the 9 November 2017 contained two errors in the effective dates for the 2017 Omnibus Amendments to NZ IFRS.
The correct effective dates for the amendments are as follows.
The amendments to NZ IFRS 10 Consolidated Financial Statements and NZ IAS 28 Investments in Associates and Joint Ventures are effective for annual periods beginning on or after 1 January 2019, with early adoption permitted.
The amendments to NZ IFRS 7 Financial Instruments: Disclosures are effective for annual periods beginning on or after 1 January 2018, with early adoption permitted.
We apologise for any confusion or inconvenience caused by this error.