NZASB Update #25

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.

NZASB Meeting

Thursday 13 December 2018, Wellington


For-profitNot-for-profitPublic Sector


Board meeting around table with speech bubbles

At this, our last, NZASB meeting for the year, the Board intends to discuss a range of topics affecting the development of accounting standards for both for-profit entities and public benefit entities (PBEs).

Agenda items for the public session include seeking Board approval to issue:

  • Definition of a Business (Amendments to NZ IFRS 3);
  • Definition of Material (Amendments to NZ IAS 1 and NZ IAS 8) and Definition of Material (Amendments to Conceptual Frameworks);
  • Exposure Draft (ED) and Invitation to Comment (ITC) for PBE IFRS 17 Insurance Contracts; and
  • ED and ITC for amendments to Appendix A When is an entity a public benefit entity? of XRB A1.

Agenda items for the public session also include:

  • discussing a draft External Reporting Board (XRB) position statement on Extended External Reporting (EER)[1] and the development of an EER navigational resource;
  • further discussion on the draft explanatory guidance on PBE FRS 48 Service Performance Reporting; and
  • approving the NZASB’s comment letter to the International Accounting Standards Board (IASB) on IASB DP/2018/1 Financial Instruments with Characteristics of Equity.

[1]    EER is an umbrella term adopted by the XRB to refer to broader and more detailed types of reporting beyond the types of information presented in an entity’s statutory financial statements. EER can include reporting information on an entity’s governance, business model, risks, opportunities, prospects, strategies and its economic, environmental, social and cultural impacts.


Did you know that NZASB meetings are open to the public?

You can access the public agenda, public meeting papers and register to attend the NZASB December meeting on our website. We upload the public meeting papers to the website a week before the meeting.

Have a look


PBE Financial Instruments


Not-for-profitPublic Sector


Tier 1 and Tier 2

Financial instruments as interlocking cogs

The NZASB has issued an exposure draft of a proposed PBE Standard on financial instruments and is seeking your feedback by 28 February 2019.

These proposals are relevant for Tier 1 and Tier 2 public benefit entities (PBEs).

NZASB ED 2018-5 PBE IPSAS 41 Financial Instruments contains proposals to update the requirements for the recognition and measurement of financial instruments for Tier 1 and 2 PBEs. These proposals will align the requirements in PBE Standards with the recently issued IPSAS 41 Financial Instruments (and NZ IFRS 9 Financial Instruments).

When finalised, PBE IPSAS 41 will supersede most of PBE IPSAS 29 Financial Instruments: Recognition and Measurement. It will also supersede PBE IFRS 9 Financial Instruments which was issued as an interim measure pending the development of PBE IPSAS 41.

The NZASB has also issued another exposure draft with related proposals. NZASB ED 2018-6 Effective Date of PBE IFRS 9 proposes to defer the effective date of PBE IFRS 9 by a year to 1 January 2022 (to prevent it becoming mandatorily effective before the effective date of PBE IPSAS 41).

Have a look


One-year deferral of IFRS 17 Insurance Contracts 


For-profit


insurance spelled out in scrabble pieces

On 14 November 2018 the IASB tentatively decided to propose a one-year deferral for the effective date for IFRS 17 to annual periods beginning on or after 1 January 2022.

The IASB has also tentatively decided to propose extending to 2022 a temporary exemption for insurers to apply IFRS 9 Financial Instruments, so that both IFRS 9 and IFRS 17 can be applied at the same time.

We expect the proposed deferral to be issued for public consultation next year, and at this time we will seek your feedback.

Please note the proposed deferral reflects tentative decisions reached by the IASB and any final decisions will be subject to feedback received and further IASB deliberations.

Further information

The IASB has proactively been working to support insurers and others transitioning to IFRS 17, including establishing a Transition Resource Group and developing education materials. The supporting materials on IFRS 17 are publicly available on the IFRS® Foundation website. 

Have a look 


Webinar on PBE Combinations exposure draft

webinar spelled out in coloured building blocks

If you missed our recent webinar providing an overview of the proposed standard on PBE combinations, you can still watch a recording of the webinar.

Have a look


Have your say...

Have your say balloon image

Before issuing a finalised accounting standard the NZASB and international standard-setting boards, IASB and International Public Sector Accounting Standards Board (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


ID

Title

Comments due to the IASB

Comments due to the NZASB

IASB DP/2018/1

Financial Instruments with Characteristics of Equity

Closed

7 Jan 2019


Not-for-profitPublic Sector


ID

Title

Comments due to the NZASB

NZASB ED 2018-6

Effective Date of PBE IFRS 9

28 Feb 2019

NZASB ED 2018-5

PBE IPSAS 41 Financial Instruments

28 Feb 2019

NZASB ED 2018-4

PBE IPSAS 40 PBE Combinations

31 Jan 2019


This NZASB Update refers to the work of the International Accounting Standards Board (IASB) and uses registered trademarks of the IFRS Foundation (for example, IFRS® Standards, IFRIC® Interpretations and IASB® papers). 


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.