NZASB Update 14/2020

New Acting Chair, P&L Presentation Consultation, Webinar recording available...

 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.

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Michael Bradbury

Michael Bradbury - Acting NZASB Chair 

The NZASB Board and Staff are delighted to welcome Michael Bradbury PhD, FCA as the Acting Chair of the NZASB until a permanent Chair is appointed by the XRB at the end of the year.

An XRB board member since 2016, Michael comes with a wealth of standard-setting experience having served on the Financial Reporting Standards Board (FRSB) for 10 years. Internationally he has represented New Zealand at the IASB, with membership on the IFRS Interpretations Committee (2004-2008), and on the IFRS Advisory Council from 2012-2014.

Michael is currently a Research Professor at Massey University in Albany with research interests in corporate financial reporting, financial analysis and governance. More recently he has been investigating public sector data pertaining to local councils.

Prior to Michael’s academic career he was a chartered accountant in a large accounting firm in Auckland and London.

Changing the face of the statement of profit or loss — consultation closing soon

Applies to:


General Presentation ED cover Applies to:


In response to investor demand for improved financial performance reporting, the International Accounting Standards Board (IASB) has proposals out for comment for a new IFRS Standard to replace IAS 1 Presentation of Financial Statements.

The proposals aim to improve how information is communicated in the financial statements, with a focus on information about performance in the statement of profit or loss.

Key proposals:

  1. new defined subtotals in the statement of profit or loss (including an operating profit or loss subtotal);
  2. defined income and expense categories in the statement of profit or loss (operating, investing, financing and integral associates and joint ventures);
  3. operating expenses analysed by nature or function in statement of profit or loss, and by nature in a note if analysed by function in statement of profit or loss;
  4. requirements for entities to identify and explain in the notes any unusual income or expenses; and
  5. management performance measures defined, brought together in a single note within scope of audit. 

“I believe that this set of proposals is very important and that it could even be a game changer in financial reporting.”

IASB Chair, Hans Hoogervorst

The proposals will affect all entities reporting in accordance with IFRS Standards.

Many entities that currently present an EBIT(1) or EBITDA(2) subtotal in their statement of profit or loss will find that under the proposals they would no longer be able to do so.

The NZASB is seeking your feedback on these proposals in IASB Exposure Draft: General Presentation and Disclosures.

We need your feedback to the NZASB by 7 August 2020 (this Friday).

Tell us what you think

(1)  Earnings before interest and taxes.
(2)  Earnings before interest, taxes, depreciation and amortisation.

COVID-19: The Implications for Financial Reporting and Audit in the Public Sector

webinar spelled as coloured blocks Applies to:

Public Sector

A recording is now available of the 15 July webinar—jointly hosted by the XRB and Victoria University of Wellington's Centre for Accounting, Governance and Taxation Research.

This webinar discusses the significant implications of the pandemic crisis and economic recovery for financial reporting and audit issues in the public sector—such as fair value measurement, impairment of assets, leases, expected credit loss assessment, subsequent events, revenue recognition, assessment of going concern, and audit reporting.

Webinar panelists

This webinar includes a panel discussion on the above issues hosted by chaired by Ian Ball with Angela Ryan and Francis Caetano focussing on financial reporting by central and local government entities respectively and Stephen Walker and Robert Cox commenting on audit issues for both central and local government.

Watch the recording here

Have your say... 

Have your say icon

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 table 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.

NZASB Consultation Documents

Not-for-profitPublic Sector


IASB Consultation Documents



IPSASB 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 the International Public Sector Accounting Standards Board (IPSASB) and uses registered trademarks of the IFRS Foundation (for example, IFRS® Standards, IFRIC® Interpretations and IASB® papers).