NZASB Update 5/2019

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.

 

We begin this NZASB Update by acknowledging the recent tragic events in Christchurch which have touched the lives of all of us. Our thoughts are with those affected by this tragedy.

Recent NZASB Meeting

Tuesday 20 March 2019, Wellington 

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For-profitNot-for-profitPublic Sector


At this meeting, the Board:

  • approved for issue PBE IPSAS 41 PBE Financial Instruments and Effective Date of PBE IFRS 9;
  • approved for issue an Invitation to Comment (ITC) and Exposure Draft (ED) for Uncertainty over Income Tax Treatments (Amendments to PBE IAS 12);
  • considered submissions received on the Exposure Draft (ED) of PBE IPSAS 40 PBE Combinations; and
  • considered an initial draft of the NZASB comment letter on IPSAS ED 67 Collective and Individual Services and Emergency Relief.

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

Have a look

The next NZASB meeting will be held on Thursday 2 May 2019 in Wellington.


PBE Financial Instruments—new standards

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Not-for-profitPublic Sector


 

Tier 1 and Tier 2

The NZASB has issued:

  • PBE IPSAS 41 Financial Instruments; and
  • Effective Date of PBE IFRS 9.

PBE IPSAS 41 supersedes PBE IFRS 9 Financial Instruments, which was issued as an interim standard, and most of PBE IPSAS 29 Financial Instruments: Recognition and Measurement.

PBE IPSAS 41 is effective for annual periods beginning on or after 1 January 2022. 

Effective Date of PBE IFRS 9 delays the effective date of PBE IFRS 9 by one year, from 1 January 2021 to 1 January 2022.

  • This is to prevent PBE IFRS 9 from becoming mandatory before the effective date of PBE IPSAS 41.
  • This standard also requires that any entities intending to early adopt PBE IFRS 9 do so before 1 January 2020.

PBE IPSAS 41

Effective Date of PBE IFRS 9


PBE consultation proposes to clarify uncertainty over income tax treatments

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Not-for-profitPublic Sector


 

 

Tier 1 and Tier 2

The NZASB has issued for comment ED 2019-1 Uncertainty over Income Tax Treatments (Proposed amendments to PBE IAS 12) and an accompanying ITC.

This ED proposes to incorporate the guidance in NZ IFRIC 23 Uncertainty over Income Tax Treatments into PBE IAS 12 Income Taxes. The proposals clarify how to apply the recognition and measurement requirements in PBE IAS 12 when there is uncertainty over income tax treatments. While not-for-profit and public sector entities do not generally pay income taxes, this guidance could be useful to the small number of these entities that do pay income taxes.

Send your comments to the NZASB by 28 June 2019.

Have a look


* An IFRIC® Interpretation is issued by the IFRS Interpretations Committee at the IASB. 


Disclosure Initiative—Principles of Disclosure: IASB research findings

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For-profit


 

 

The IASB has published the Project Summary for their research project on Disclosure Initiative—Principles of Disclosure.

The IASB received feedback that stakeholders have three main concerns about information disclosed in financial statements, collectively referred to as the “disclosure problem”:

  • not enough relevant information is disclosed;
  • too much irrelevant information is disclosed; and
  • information disclosed is ineffectively communicated.

This feedback led the IASB to establish the Disclosure Initiative, an initiative exploring how to make disclosures more effective in financial statements.

The Principles of Disclosure research project was one part of the Disclosure Initiative. The IASB carried out the research project to consider how it could help address the disclosure problem.

Have a look 

After reviewing the findings of the research project, the IASB decided that improving the way disclosure requirements are developed and drafted in IFRS Standards is the most effective way it can help to address the disclosure problem. Consequently, the Board decided to prioritise its Targeted Standards-level Review of Disclosures project.


For-profit and PBE Standards—new versions available

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For-profitNot-for-profitPublic Sector


 

 

We have been busy working behind the scenes to update our accounting standards. New versions, incorporating consequential amendments from a number of new standards and recent amending standards, are now available on the website.

The most recent version of a standard is featured first on each standard’s landing page. Previous versions are then listed below that.

Have a look


NZASB Summary Work Plan

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For-profitNot-for-profitPublic Sector


 

 

 Did you know that the NZASB’s Work Plan is published on the XRB website?

The NZASB Work Plan is a summary of the significant standard-setting projects that the NZASB is expected to consider over its next four meetings. It includes the NZASB’s milestones for each domestic and international standard-setting project.

Have a look


Have your say...

Have your say iconBefore 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


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IASB Consultation Documents


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IPSASB Consultation Documents


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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).