Enhancements to the PBE Standards for Not-for-Profit Entities (issued November 2013)

The NZASB has issued a package of Exposure Drafts (EDs) that operationalise the new Accounting Standards Framework as it applies to Tier 1 and Tier 2 Not-for-Profit Public Benefit Entities (NFP PBEs).  Comments are due by Friday 2 May 2014.

The initial suite of PBE Standards that was issued in May 2013 was developed primarily with public sector entities in mind.  This Package contains the proposed enhancements to those PBE Standards to make them appropriate for application by Tier 1 and Tier 2 NFP entities. 

The Package consists of Exposure Draft NZASB 2013-5 Enhancements to the PBE Standards for Not-for-Profit Entities together with accompanying Invitation to Comment.  The ED comprises:

  • EDs for NFP enhancements to each of the 39 PBE Standards in the current suite of PBE Standards;
  • An ED for enhancements to the PBE Framework; and
  • EDs for two new Explanatory Guides to support the application of ED PBE IPSAS 6 in the NFP sector.

The proposed changes from the existing PBE Standards are marked-up in the ED.  None of the proposed changes will impact the reporting requirements for public sector PBEs.

This “NFP Enhancements” Package is the 5th and final package of EDs issued by the NZASB since 2011 to give effect to the new Accounting Standards Framework  established by the XRB.  For more information about that Framework please click here. The Tiers for NFP PBEs are specified in Standard XRB A1 (FP Entities + PS PBE + NFPs Update) which will be issued shortly. The exposure draft of XRB A1 (FP Entities + PS PBE + NFPs Update) is available here.

EDs for Enhancements for PBE Standards for NFP PBEs (Tier 1 and Tier 2)

Listed below are the EDs PBE Standards that NFP PBEs in Tier 1 will be required to apply for years beginning on or after 1 April 2015.  Tier 2 NFP PBEs will be able to apply the Reduced Disclosure Requirements (RDR) in those ED Standards.  Comments are sought on the proposed enhancements in these EDs. 

Invitation to Comment Enhancements to the PBE Standards for Not-For-Profit Entites
ED PBE IPSAS 1 Presentation of Financial Statements
ED PBE IPSAS 2 Cash Flow Statements
ED PBE IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors
ED PBE IPSAS 4 The Effects of Changes in Foreign Exchange Rates
ED PBE IPSAS 5 Borrowing Costs
ED PBE IPSAS 6 Consolidated and Separate Financial Statements
ED PBE IPSAS 7 Investments in Associates
ED PBE IPSAS 8 Interests in Joint Ventures
ED PBE IPSAS 9 Revenue from Exchange Transactions
ED PBE IPSAS 10 Financial Reporting in Hyperinflationary Economies
ED PBE IPSAS 11 Construction Contracts
ED PBE IPSAS 12 Inventories
ED PBE IPSAS 13 Leases
ED PBE IPSAS 14 Events After the Reporting Date
ED PBE IPSAS 16 Investment Property
ED PBE IPSAS 17 Property, Plant and Equipment
ED PBE IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets
ED PBE IPSAS 20 Related Party Disclosures
ED PBE IPSAS 21 Impairment of Non-Cash-Generating Assets
ED PBE IPSAS 23 Revenue from Non-Exchange Transactions
ED PBE IPSAS 25 Employee Benefits
ED PBE IPSAS 26 Impairment of Cash-Generating Assets
ED PBE IPSAS 27 Agriculture
ED PBE IPSAS 28 Financial Instruments: Presentation
ED PBE IPSAS 29 Financial Instruments: Recognition and Measurement
ED PBE IPSAS 30 Financial Instruments: Disclosures
ED PBE IPSAS 31 Intangible Assets
ED PBE IPSAS 32 Service Concession Arrangements: Grantor
ED PBE IFRS 3 Business Combinations
ED PBE IFRS 4 Insurance Contracts
ED PBE IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
ED PBE IAS 12 Income Taxes
ED PBE IAS 34 Interim Financial Reporting
ED PBE FRS 42 Prospective Financial Statements
ED PBE FRS 43 Summary Financial Statements
ED PBE FRS 45 Service Concession Arrangements: Operator
ED PBE FRS 46 First-time Adoption of PBE Standards by Entities Previously Applying NZ IFRSs
ED PBE FRS 47 First-time Adoption of PBE Standards by Entities Other Than Those Previously Applying NZ IFRSs
ED PBE Framework Public Benefit Entities' Framework
Glossary PBE Standards Glossary of Defined Terms

Draft Explanatory Guides to Support the PBE Standards for NFP PBEs (Tier 1 and Tier 2)

Listed below are the draft Explanatory Guides that have been developed to support the application of the PBE Standards.  Comments are sought on the content of these Guides.

EG Ax Explanatory Guide Ax Financial Reporting by Not-for-Profit Entities: The Reporting Entity
EG Ay Explanatory Guide Ay Financial Reporting by Tier 1 and Tier 2 Not-for-Profit Entities: Identifying Relationships for Financial Reporting Purposes

Other Material

Listed below is a document containing the impact assessments that formed part of the Invitation to Comment that accompanied the Exposure Draft PBE Standards for Public Sector PBEs (ED PBE Standards) issued in June 2012. The impact assessments were for public sector PBEs transitioning from full NZ IFRS (as applied by PBEs for annual periods beginning on or after 1 July 2011) to the PBE Standards for public sector PBEs proposed in that exposure draft. 

The impact assessments have been made available as part of the NFP Enhancements Package, as they may assist NFP entities consider the impact of applying the PBE Standards.  No comments are sought on the impact assessments.

Impact Assessment Public Benefit Entity Standards Impact Assessment for Public Sector PBEs
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