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.  

Submissions closed on 31 January 2019