NZASB Update 3/2019

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

Tuesday 12 February 2019, Wellington

Board meeting icon 

For-profitNot-for-profitPublic Sector


The Board received presentations from NZASB staff on the following documents:

Firstly, from the IPSASB:

  • IPSAS 42 Social Benefits;
  • ED 67 Collective and Individual Services and Emergency Relief; 

Secondly, from the IASB:

  • Better Communication in Financial Reporting – Disclosure Initiative.

The Board also welcomed the IPSASB Chair, Ian Carruthers who spoke about current and future projects on the IPSASB agenda.

The public agenda and meeting papers are available on the XRB website.

Have a look

The next NZASB meeting will be held on Wednesday 20 March 2019 in Wellington.


Reminder: ED PBE IFRS 17 Insurance Contracts

Open for comment icon


Not-for-profitPublic Sector


Tier 1 and Tier 2

In December 2018 the NZASB issued for comment ED PBE IFRS 17 Insurance Contracts and an accompanying Invitation to Comment (ITC). The ED is based on the requirements of IFRS 17 Insurance Contracts (and NZ IFRS 17 Insurance Contracts).

The NZASB is proposing to extend the scope of the proposed standard to capture schemes:

  • that are intended to be fully funded from contributions and levies; and
  • where there is evidence that the entity manages the scheme in the same way as an issuer of insurance contracts—including assessing the financial performance and financial position of the arrangement on a regular basis.

The Board does not propose PBE-specific modifications other than to the scope as outlined above.

However, it is interested in obtaining feedback on whether further PBE modifications are required in respect of certain issues outlined in the ITC.

If you are potentially affected by these proposals, we encourage you to provide feedback.

Have a look

Comments are due by Friday 17 May 2019.

When finalised, PBE IFRS 17 will supersede PBE IFRS 4 Insurance Contracts.


Business Links Seminar on new Leasing Standards

People iconPeople icon


For-profitNot-for-profitPublic Sector


This recent seminar provided a wealth of information for anyone interested in new developments in leasing standards.

Photo of seminar speakers and hosts

Back row: Warren Allen (CEO, XRB), Graeme Mitchell (Chair of the XRB Board), Professor Tony van Zijl (Director of CAGTR, VUW*), Karl Hickey.

Front row: Ian Carruthers, Angela Ryan, Francis Caetano.

Photo credit: Robert Walker  

  • Ian Carruthers, Chair of IPSASB, spoke about the evolution of the leasing standard at the IPSASB and current consultation on the Lessor model for the Public Sector; consultation strongly supported using the IFRS 16 model for lessee accounting, and there were mixed views about using the IFRS 16 model for lessor accounting.
  • Angela Ryan, Principal Accounting Advisor at Treasury, firstly spoke about the Government as lessee and secondly about the effect of the new leasing standards on the Whole-of-Government Accounts, which includes State-owned Entities which prepare for-profit financial statements.
  • Francis Caetano, Group Financial Controller at Auckland Council, spoke about the Council’s challenges as a lessor when providing assets for the public benefit. Auckland Council supports community groups with concessionary or peppercorn leases. It also provides social housing for the elderly.
  • Karl Hickey, Senior Finance Manager at ANZ spoke about the challenges in implementing NZ IFRS 16 in the banking industry, including establishing what leases were held, whether to take advantage of the low-value lease exemption and changes required to accounting processes to implement the new standard. He also spoke about the asymmetry of the new IFRS leasing standard, with different requirements for lessees and lessors.

Following questions, Warren Allen proposed a vote of thanks to the speakers.

If you missed this informative seminar:

Access the audio with slides (59 minutes) 

View the presentation slides

Interesting fact from Francis Caetano— 

Auckland Council is the biggest council in Australasia, providing services to 1.66 million people.

Supporting materials for implementing IFRS standards  

Standards icon 

For-profit


Did you know that the IFRS Foundation produces materials to support the implementation of IFRS Standards available free of charge on its website?

The materials for each IFRS Standard and IFRIC Interpretation are grouped together, including:

  • educational resources;
  • webcasts and webinars;
  • articles written by IASB Board members;
  • IFRS Interpretation Committee agenda decisions; and
  • matters being considered by a Transition Resource Group (where relevant).

IFRS Interpretation Committee agenda decisions often include information to help entities apply IFRS Standards. They do so by explaining how the principles and requirements in IFRS Standards apply to certain questions and issues. 

Here's links to the supporting materials for two standards.

We have added a quick link from our website to these supporting materials on the IFRS Foundation website.  You'll find the link on the Accounting Standards dropdown menu as shown below. Why not check them out now? 

Screenshot of accounting standards menu


Our new submissions process

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For-profitNot-for-profitPublic Sector


We have recently transformed the way you can provide feedback on documents we put out for consultation.

You can now submit your documents or comments using the consultation page on the XRB website.

We have designed a secure online form to make your upload safe, quick and easy. The upload form will now appear with every consultation document open for comment.  

For example, if you wanted to make a submission or provide some informal comments on, say NZASB ED 2018-5 PBE IPSAS 41 Financial Instruments, you can now do this directly using the XRB website – instead of attaching it to an email or posting it to us.

We encourage you to use the new online submission process.

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments directly in the comments field provided.

Have a look 


Have your say...

Have your say icon

For-profitNot-for-profitPublic Sector


Before issuing a finalised accounting standard the NZASB and the international standard-setting boards, 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. 

Tell us how these changes could affect your entity or the entities you work with.

We welcome your comments and feedback, either formal or informal, by the due dates below.

Please use our new submissions process. You can now submit directly from the Exposure Draft page on our website!

 

For-profit, Not -for-profit and Public Sector standard

 

IASB standard

 

IPSASB standard

 


Tier 1 and Tier 2 PBE Standards


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.


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).