Annual Improvements to IFRS Accounting Standards (2023)
|The Exposure Draft Annual Improvements to IFRS Accounting Standards - Volume 11 proposes minor and narrow-scope amendments to several IFRS Accounting Standards -- including clarifications, simplifications, corrections and changes to improve consistency.||
Your feedback is important
We encourage you to read the ED and to share your comments with us.
While the proposed amendments are minor, it is important that we receive comments from preparers and users of for-profit financial statements, about any unintended consequences or challenges that the proposals may lead to.
As well as informing our feedback to the IASB, your comments also help us ensure that the standard contributes to reporting outcomes for relevant entities in Aotearoa New Zealand.
The External Reporting Board (XRB) is committed to adopting international accounting standards in the for-profit sector. Generally, once a standard has been issued by the IASB, we then issue the New Zealand equivalent standard without further public consultation.
The Exposure Draft includes proposed minor and/or narrow-scope improvements to the IFRS Accounting Standards listed below:
- IFRS 1 First-time Adoption of International Financial Reporting Standards:
In the first-time adoption requirements that relate to hedge accounting, adding cross-references to IFRS 9 Financial Instruments and updating terminology for consistency with IFRS 9.
- IFRS 7 Financial Instruments: Disclosure:
Updating obsolete cross-references and terminology relating to fair value in an application guidance paragraph about disclosing gains/losses on derecognition of financial assets; and improvements to two illustrative examples.
- IFRS 9 Financial Instruments:
Clarifying that the general requirement relating to gains/losses on the derecognition of financial liabilities also applies to lease liabilities; and amendments to ensure that the term ‘transaction price’ is not used with two different meanings within IFRS 9.
- IFRS 10 Consolidated Financial Statements:
Amendments to improve consistency between two application guidance paragraphs that relate to parties acting as the investor’s ‘de-facto agents’.
- IAS 7 Statement of Cash Flows:
Replacing the obsolete term ‘cost method’ with the term ‘at cost’ (in the context of accounting for subsidiaries, associates or joint ventures).
Accessing the consultation document
Commenting on the proposals
Please send your comments—both formal and informal—by 17 November 2023, using the secure upload form below, or by emailing us at Accounting@xrb.govt.nz.
Comments can also be made directly to the IASB (by 11 December 2023), using this link https://www.ifrs.org/projects/open-for-comment/. When submitting directly, we encourage you to send a copy of your submission to us using the upload form below.
We intend on 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 2020 also applies.