NZASB Update 4/2019

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.

 

Upcoming NZASB Meeting

Wednesday 20 March 2019, Wellington

Board meeting icon 

For-profitNot-for-profitPublic Sector


At this meeting, the Board will consider:

  • submissions received on the Exposure Draft (ED) of PBE IPSAS 40 PBE Combinations;
  • submissions received on the ED of PBE IPSAS 41 PBE Financial Instruments and approval as a final Standard;
  • a draft NZASB comment letter on IPSAS ED 67 Collective and Individual Services and Emergency Relief; and
  • approval of an Invitation to Comment and Exposure Draft for Uncertainty over Income Tax Treatments (Amendments to PBE IAS 12).

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

Have a look


XRB releases Position Statement on Extended External Reporting

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For-profitNot-for-profitPublic Sector


Extended External Reporting (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.

Find out more

In response to calls for organisations to include broader and more detailed types of reporting in their annual reports, the XRB has released its Position Statement on Extended External Reporting (EER).

XRB Chief Executive, Warren Allen, says that growing demand from investors, for entities to report non-financial information, is unquestionable. However, so is the demand from wider stakeholder groups, such as public policy-setters, non-government organisations, employees and communities.

“To avoid impairing the effective communication of information that is relevant to the intended users of annual reports, a distinction needs to be drawn between EER information relevant to the intended users and EER information provided for other purposes, such as public policy purposes.”

Read the Position Statement

The XRB supports continued innovation in EER and is committed to working collaboratively with key stakeholders, including policy makers and regulators, to help generate the right balance between policies, regulation and innovation.

The Position Statement is not intended to provide guidance for the preparation and presentation of EER information. The XRB intends to promote resources to assist you in undertaking EER in due course.


Reminder: XRB ED 2018 Amendments to XRB A1 Appendix A

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For-profitNot-for-profitPublic Sector


Tier 1 and Tier 2

In December 2018, the XRB issued for comment an Exposure Draft (ED)for Amendments to Appendix A of XRB A1 Application of the Accounting Standards Framework and an accompanying Invitation to Comment (ITC). The title of Appendix A is When is an Entity a Public Benefit Entity?

The ED proposes more guidance on the definition of a Public Benefit Entity (PBE) and proposes revised indicators and illustrative examples. 

An entity's classification as a PBE or for-profit entity is important to enable it to apply the appropriate accounting standards and associated accounting policies.

We encourage you to read and comment on the ITC and ED.

Comments on the ED are due by Friday 29 March 2019.


Discount Rates: IASB research findings

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For-profit


The IASB has published the Project Summary for their research project on Discount Rates.

This research project was undertaken to:

  • investigate the reasons for identified inconsistencies between requirements relating to discount rates in various IFRS standards; and
  • assess whether the IASB should consider addressing such inconsistencies.

Have a look

The IASB concluded that the project had met its objectives and has no plan to start a separate project on discount rates.The research findings will instead be used in current and future projects to help avoid creating unjustifiable inconsistencies in relation to discount rates. 


IPSASB’s 5 year Strategy and Work plan

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Not-for-profitPublic Sector


The IPSASB has made available its Strategy and Work Plan 2019-2023: Delivering Global Standards. Inspiring Implementation.  This will shape its work and priorities for the next five years.

Have a look

The IPSASB will implement this through through two streams:

Firstly, delivering global standards by:

  • setting standards on public sector specific issues;
  • maintaining IFRS alignment; and
  • developing guidance to meet users’ broader financial reporting needs;

Secondly, inspiring their implementation by:

  • promoting IPSAS adoption and implementation; and
  • advocating the benefits of accrual in strengthening Public Financial Management.

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.


XRB Consultation Documents


For-profitNot-for-profitPublic Sector


 


IASB Consultation Documents


For-profit


 


IPSASB Consultation Documents


Public Sector


 


NZASB Consultation Documents


Not-for-profitPublic Sector



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).