NZASB Update #16

This NZASB Update provides you with an overview of the New Zealand Accounting Standards Board’s recent activities, any new standards or interpretations, as well as other matters of interest.

Recent meetings

NZASB June Board meeting


For-profitNot-for-profitPublic Sector


Meeting highlights included:

  • Approving 2018 Omnibus Amendments to Tier 3 and Tier 4 PBE Accounting Requirements.
  • Approving Reduced Disclosure Requirements (RDR) concessions for Tier 2 for-profit entities for NZ IFRS 16 Leases and NZ IAS 7 Statement of Cash Flows.
  • Approving the comment letters to the International Public Sector Accounting Standards Board (IPSASB) on:
    • Exposure Draft (ED) 64 Leases; and
    • ED 65 Improvements to IPSAS, 2018.
  • Approving the ED and Invitation to Comment (ITC) for the issue of 2018 Omnibus Amendments to PBE Standards (see below).
  • Discussing the draft Service Performance Reporting Guidance.

You can access the public agenda, meeting papers and the meeting highlights now on the XRB website.

Have a look


IPSASB June Board meeting


Not-for-profitPublic Sector


The NZASB met on 27 June and discussed a range of topics affecting both public benefit entities (PBEs) and for-profit entities.

The IPSASB met during 19-22 June 2018 in Toronto, Canada and discussed a range of topics about developing public sector accounting standards.

Todd Beardsworth, NZASB member and Assistant Auditor-General, Accounting and Policy, has recently been appointed to the IPSASB Board.

Meeting highlights included:

  • Approving IPSAS 41 Financial Instruments for issue, which is the public sector equivalent of IFRS 9 Financial Instruments.
  • Proceeding with the development of a Social Benefits standard, following the consideration of comments received on ED 63 Social Benefits.
  • Developing the Revenue and Non-Exchange Expenses standards, following the consideration of comments received on its Consultation Paper Accounting for Revenue and Non‑Exchange Expenses.
  • Further work on the Public Sector Measurement project with an ED currently expected to be issued in late 2018.

Listen to the meeting summary (15 minute podcast)

The next IPSASB meeting is 18-21 September 2018 in Toronto.


IASB DP: Financial Instruments with Characteristics of Equity


For-profit


 Tier 1 and Tier 2

The International Accounting Standards Board (IASB) has recently published for comment the Discussion Paper DP/2018/1 Financial Instruments with Characteristics of Equity (DP).

The DP considers challenges associated with the classification of certain financial instruments as financial liabilities or equity instruments in accordance with IAS 32 Financial Instruments: Presentation.

The Discussion Paper is seeking comments on:

  • the challenges the IASB has identified;
  • whether the challenges are sufficiently important and pervasive to require standard-setting activity; and
  • the IASB’s preferred approach to addressing the challenges.

Send your comments to the NZASB by 7 November 2018.

Sue Lloyd, Vice-Chair of the IASB, discusses the DP in a video presentation.

Watch the video (4 minutes)


ED: Omnibus Amendments to PBE Standards


Not-for-profitPublic Sector


Tier 1 and Tier 2

At its June meeting the NZASB approved the ED and ITC for the issue of NZASB ED 2018-3 2018 Omnibus Amendments to PBE Standards.

The ED proposes improvements and narrow scope amendments which are important but relatively minor in nature.

Have a look

Send your comments to the NZASB by 28 September 2018.


FMA: Improving financial statements

The Financial Markets Authority (FMA) has published a monitoring report that summarises the findings from its review of the most recently issued financial statements of the NZX 50 to determine the extent of improvements in the presentation of financial statements in a clear, concise and effective way.

The report also sets out some suggestions for additional improvements to the financial statements. 

 FMA Two steps to effective financial statements diagram

 

Have a look at the full report 


Have your say...

Before issuing a finalised accounting standard the NZASB and international standard-setting boards, such as the IASB and the IPSASB, issue consultation documents. These documents seek your feedback on proposals that could potentially affect you.

We are currently consulting on the matters set out in the tables below. 

We welcome your comments and feedback, either formal or informal, by the due dates below. Tell us how these changes could affect your entity or the entities you work with.

For-profit standards

ID

Title

Comments due to the NZASB

Comments due to the IASB

IASB ED/2018/1

Accounting Policy Changes (Proposed amendments to IAS 8)

CLOSED

27 Jul 2018

IASB DP/2018/1

Financial Instruments with Characteristics of Equity

7 Nov 2018

7 Jan 2019

Tier 1 and Tier 2 PBE Standards

ID

Title

Comments due to the NZASB

Comments due to the IPSASB

IPSASB ED 65

Improvements to IPSAS, 2018

CLOSED

15 Jul 2018

NZASB ED 2018-3

2018 Omnibus Amendments to PBE Standards

28 Sep 2018

N/A


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This NZASB Update is intended to provide subscribers with a summary of the recent activities of the New Zealand Accounting Standards Board (NZASB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board and its sub-Board the NZASB do not guarantee, and accept no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.