NZASB Update 7/2019

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.


Recent NZASB Meeting

Thursday 2 May 2019

NZASB icon

Applies to:

For-profitNot-for-profitPublic Sector

At this meeting, the Board:

  • supported the XRB Board’s approval of amendments to Appendix A of XRB A1. Appendix A provides guidance to help entities assess whether they are a public benefit entity;

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  • approved for issue an Invitation to Comment and Exposure Draft (ED) for 2019 Omnibus Amendments to NZ IFRS;

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  • approved for issue its comment letter on an ED issued by the IPSASB on Collective and Individual Services and Emergency Relief;
  • considered a revised draft of guidance to support the implementation of PBE FRS 48 Service Performance Reporting.

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

Have a look

The next public NZASB meeting will be held on 27 June 2019 in Wellington.

A non-public NZASB meeting will be held on 6 June 2019.

Amendments to XRB A1 Appendix A

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Applies to:

For-profitNot-for-profitPublic Sector

The XRB Board has recently approved 2019 Amendments to XRB A1 Appendix A.  Appendix A of XRB A1 contains guidance on determining when an entity is a public benefit entity (PBE).

Have a look

The amendments are intended to assist you to determine whether your entity is a PBE or for-profit entity for financial reporting purposes.

The classification of an entity as a PBE or for-profit entity is important to ensure an entity applies the appropriate accounting standards and associated accounting policies (i.e. PBE Standards or NZ IFRS) when preparing its general purpose financial reports.

The amendments clarify that the definition of a PBE comprises two interdependent parts: 

  1. the primary objective to provide goods or services for community or social benefit; and 

  2. the provision of equity to support that primary objective rather than for a return to equity holders.

Both parts of the definition need to be assessed in combination when determining an entity’s classification.

The amendments have also updated the indicators and examples provided in Appendix A of XRB A1 for determining whether an entity meets the definition of a PBE.

The amendments are effective for reporting periods beginning on or after 1 January 2020, with early adoption permitted.

Omnibus Amendments to NZ IFRS

NZASB ED 2019-2 cover 

Applies to:




The NZASB has issued an Invitation to Comment and ED for 2019 Omnibus Amendments to NZ IFRS (Omnibus ED).

Have a look 

The Omnibus ED proposes amendments to NZ IFRS to:

  1. add a paragraph to FRS-44 New Zealand Additional Disclosures to require disclosures where the IASB issues a new IFRS that is not yet effective, and the equivalent NZ IFRS has not yet been issued by the XRB, so that Tier 1 for-profit entities are able to simultaneously assert compliance with IFRSs and NZ IFRS in this situation;
  2. defer the mandatory effective date of Sale or Contribution of Assets between an Investor and its Associates and Joint Ventures (Amendments to NZ IFRS 10 and NZ IAS 28) so that entities are not required to apply the amendments until the IASB has specified an effective date;
  3. delete the paragraphs dealing with elements in the statement of service performance from FRS-44 because these paragraphs contain outdated terminology; and
  4. make editorial corrections.

Please send your comments to the NZASB by 16 August 2019.

IPSASB issues Consultation Paper on Measurement

IPSASB Consultation on Measurement cover

Applies to:

Not-for-profitPublic Sector



The IPSASB has recently issued proposals to develop a measurement standard with guidance on common measurement bases such as historic cost, fair value and replacement cost.

Have a look

The IPSASB is also seeking comments on the treatment of transaction costs and borrowing costs.

The Consultation Paper (CP), Measurement, discusses these proposals and indicates the type of guidance that might be included in a future measurement standard.

Your feedback on this CP will help inform the IPSASB’s future direction in developing revised requirements for the measurement of assets and liabilities at initial recognition, subsequent measurement, and measurement-related disclosure.

Therefore, it important that we receive your feedback.  Please send your comments to the NZASB by 9 August 2019 or direct to the IPSASB by 30 September 2019.

IASB consultation on interest rate benchmark reform

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Applies to:




The IASB has recently issued for comment an ED on the interest rate benchmark reform.

Have a look

This ED proposes changes to IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement in light of the reform of interest rate benchmarks such as inter-bank offer rates (IBORs).  These proposals allow the continued use of hedge accounting when there is uncertainty around interest rate benchmark reform.

The IASB expects that interest rate benchmark reform will affect many preparers, given the extensive use of interest rate benchmarks in global financial markets.

The proposals in the ED will affect entities that apply the hedge accounting requirements of NZ IFRS 9 Financial Instruments or NZ IAS 39 Financial Instruments: Recognition and Measurement to hedges of interest rate risk affected by interest rate benchmark reform, and those who use their financial statements.

This ED has a short 45-day comment period so please send your comments directly to the IASB by 17 June 2019.

IFRS Foundation consultation on Due Process Handbook

Amendments to IFRS Due Process Handbook cover 

Applies to:




The IFRS Foundation has issued for comment Exposure Draft: Proposed amendments to the IFRS Foundation Due Process Handbook. The XRB is currently considering whether to comment on this document. Comments are due at the IFRS Foundation by 29 July 2019.

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.

You can now submit directly from the Exposure Draft page on our website.

NZASB Consultation Documents

Not-for-profitPublic Sector

IASB and IFRS Foundation Consultation Documents


IPSASB Consultation Documents

Public 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).