NZASB Meeting 7 May 2020

Here is a summary of the main matters considered in the public session.

Options for Relief from PBE FRS 48 – Tier 1 and Tier 2 PBEs 

Given the disruption to the operations of many PBEs during 2020 as a result of COVID-19 the Board has become aware that some PBEs may be unable to successfully implement PBE FRS 48 Service Performance Reporting by its effective date. The Board is therefore proposing to defer the effective date of PBE FRS 48 by one year (from 1 January 2021 to 1 January 2022). The standard would remain available for early adoption. The Board approved an exposure draft for issue.

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The Board stressed its ongoing support for the objective of the standard (being to establish principles and requirements for an entity to present service performance information that is useful for accountability and decision-making purposes) and the importance of service performance information for users of PBE financial reports. In proposing to defer the effective date of the standard the Board was motivated by a desire to provide affected PBEs with more time, in the current circumstances, to successfully implement the standard and meet this objective.

IPSASB Revenue and Expenses

The Board considered and provided feedback on the proposals in IPSASB ED 70 Revenue with Performance Obligations and IPSASB ED 71 Revenue without Performance Obligations relating to the measurement of receivables and binding contract assets.

The Board also considered some examples outlining the application of the proposals in ED 71.

The Board will consider the proposals in IPSASB ED 72 Transfer Expenses, and the disclosure requirements across the three EDs at future meetings.

Tier 3 and Tier 4 PIR

The Board considered and provided feedback on a draft Request for Information (RFI) for the Post-implementation Review (PIR) of the Tier 3 and Tier 4 Simple Format Reporting Standards. The Board agreed staff should seek feedback on the draft RFI from key stakeholders.

The Board will approve the RFI for issue at a future meeting.

Goodwill and Impairment

The Board discussed and provided feedback on some of the IASB’s preliminary views in IASB DP/2020/1 Business Combinations – Disclosures, Goodwill and Impairment. The Board also agreed on the general approach to drafting the comment letter to the IASB and provided feedback on the updated project plan.

The Board will continue to discuss the DP at future meetings.

For-profit RDR

The Board considered whether it should comment a project to align the disclosure requirements for Tier 2 for-profit entities with the new disclosure requirements recently issued by the Australian Accounting Standards Board (AASB) in AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.

In considering this matter, the Board noted that the IASB has an active project on disclosure requirements of subsidiaries that are SMEs, which has similarities with both AASB 1060 and NZ IFRS RDR. The Board agreed to wait for the IASB to develop and issue an ED for its project and then consider this matter further, subject to seeking feedback on this approach from the XRB Board.

Standard Approved – For-profit Entities

The Board noted that Classification of Liabilities as Current or Non-current has been issued.

Next NZASB meeting

Thursday 4 June 2020 (half day).

This meeting summary refers to the work of the International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board (IPSASB) and uses registered trademarks of the IFRS Foundation (for example, IFRS® Standards, IFRIC® Interpretations and IASB® papers).  

Event Date 7 May

Date And Time

Level 7
50 Manners Street
Wellington 6011

This event has already taken place.

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