NZASB ED 2018-4

  • Not-for-profit
  • Public Sector

Tier 1 and Tier 2 Standards

PBE Combinations

The New Zealand Accounting Standards Board (NZASB) has issued for comment NZASB ED 2018-4 PBE IPSAS 40 PBE Combinations (the ED).

ED 2018-4 sets out proposals for accounting for amalgamations and acquisitions that would replace the current requirements in PBE IFRS 3 Business Combinations. The ED is based on IPSAS 40 Public Sector Combinations, issued by the International Public Sector Accounting Standards Board (IPSASB).

There are some significant differences between the proposals in the ED and the requirements in PBE IFRS 3. The ED:

  • has a broader scope than PBE IFRS 3 – the scope of PBE IFRS 3 excludes combinations under common control and combinations arising from local authority reorganisations; and
  • proposes to establish requirements for both amalgamations and acquisitions — PBE IFRS 3 requires that all combinations within the scope of the standard be accounted for as acquisitions.  

Commenting on the Proposal

If you have previously been involved in accounting for an amalgamation or an acquisition, or may be involved in a PBE combination, you may be interested in commenting on some or all of the proposals in the ED.

Send your comments—both formal and informal—by 31 January 2019 to the NZASB as follows:

Either by post to the:

Chief Executive
External Reporting Board
PO Box 11250
Manners Street Central

OR by email to

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).