NZASB Meeting 1 April 2020

Event Date 01 April

Date And Time

Location:
by videoconference ONLY.

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

IPSASB Revenue and Expenses

The Board considered and provided feedback on the proposals in IPSASB ED 70 Revenue with Performance Obligations relating to the clarity of the scope of the ED, and the application guidance about accounting for transactions with components within the scope of both ED 70 and IPSASB ED 71 Revenue without Performance Obligations.

ED 70 contains proposals for accounting for revenue arising from binding arrangements with a purchaser that include performance obligations, as defined in ED 70, to transfer promised goods or services to the purchaser or third-party beneficiaries.

The Board also considered and provided feedback on the proposals in ED 71 that an inflow of resources with enforceable obligations to perform a specified activity or incur eligible expenditure (but no performance obligations as defined by ED 70) can give rise to present obligations that meet the definition of a liability.

The Board will consider the remaining proposals in ED 71, the proposals in IPSASB ED 72 Transfer Expenses, and the disclosure requirements across these three EDs at future meetings.

General Presentation and Disclosures (formerly Primary Financial Statements)

The Board considered and provided feedback on the proposals in IASB ED/2019/7 General Presentation and Disclosures relating to Management Performance Measures, unusual income and expenses, aggregation and disaggregation, and amendments to other IFRS Standards.

The Board will consider feedback received from New Zealand constituents and a draft comment letter to the IASB at a future meeting.

Amendments to NZ IFRS

The Board approved for issue Classification of Liabilities as Current or Non-current, which amends NZ IAS 1 Presentation of Financial Statements. The amending standard is applicable to Tier 1 and Tier 2 for-profit entities and is effective from 1 January 2022 retrospectively in accordance with NZ IAS 8. Early application is permitted.

The amendments aim to promote consistency in reporting by helping entities determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

PBE Policy Approach

The Board undertook its annual review of the application of the Policy Approach to Developing the Suite of PBE Standards. The Board also considered the application of the Policy to Improvements to IPSAS, 2019 and agreed that some of these amendments should be considered for inclusion in the next Omnibus Amendments to PBE Standards.

Next NZASB meeting

Thursday 7 May 2020 in Wellington.


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).