NZASB ED 2020-3

  • Not-for-profit
  • Public Sector

Going Concern Disclosures

The New Zealand Accounting Standards Board (NZASB) has published for public comment NZASB ED 2020-3 Going Concern Disclosures (Proposed amendments to PBE IPSAS 1).

The NZASB is seeking comments on proposals to establish more specific going concern disclosure requirements in situations where management has determined that the going concern basis of preparation is appropriate, and either:

  • material uncertainties were considered in forming this view; or
  • significant judgement was applied in forming this view.

These more specific disclosure requirements are intended to address the increased need of resource providers and other users of financial statements for relevant and transparent information about such situations and to help preparers considering how to meet the information needs of users.

The proposed disclosure requirements will also help align the requirements in accounting standards with the requirements in auditing standards for auditors to assess the adequacy of going concern disclosures.

While responding to the increased uncertainty arising from COVID-19 was an initial driver for these proposals, they are also expected to lead to more informative going concern disclosures in the future.

The NZASB encourages you to read NZASB ED 2020-3 and comment on the proposals.

A similar ITC and ED for the for-profit entities is being issued at the same time – see NZASB ED 2020‑2 Going Concern Disclosures (Proposed amendments to FRS-44).

Have a look

Consultation Document

Commenting on the Proposal

This is your opportunity to comment on these proposals.

Comments are due to the NZASB by 24 July 2020.

Send your comments—both formal and informal—to the NZASB using the upload form below.

Upload your submission here

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