NZASB Update 3/2020

New revenue and transfer expense proposals

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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3 IPSASB Exposure Drafts: Revenue and Transfer Expenses

Not-for-profitPublic Sector

Tier 1 and Tier 2

The IPSASB has published three related exposure drafts (EDs) dealing with revenue and transfer expenses.

  • ED 70 Revenue with Performance Obligations
  • ED 71 Revenue without Performance Obligations
  • ED 72 Transfer Expenses

Accounting for revenue has been a hot topic since the PBE Standards were introduced, particularly the requirements for non-exchange revenue. The IPSASB has issued proposals for two new revenue standards which would replace the three existing revenue standards.[1]

The IPSASB is also proposing a new standard on accounting for transfer expenses such as grants made to other parties. At present there is no IPSAS, and no PBE Standard, explicitly dealing with transfer expenses. In the absence of clear guidance on transfer expenses there have been debates about how to account for multi-year funding arrangements.

Once the IPSASB completes these projects the NZASB intends to develop new PBE Standards. We therefore encourage all Tier 1 and Tier 2 PBEs to consider the proposals and provide feedback.

Comments are due to the NZASB by 14 August 2020 and to the IPSASB by 15 September 2020.

Have a look

[1]    IPSAS 9 Revenue from Exchange Transactions, IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers) and IPSAS 11 Construction Contracts.

Have your say…

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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.

You can submit your comments directly from the Exposure Draft pages on our website following the links below.

IASB Consultation Document



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).