NZASB Meeting 05 April 2022

Here is a summary of the main matters considered in the public session.

Disclosure of Fees Paid to Audit Firms

The Board considered and provided feedback on proposals to introduce enhanced disclosure requirements in relation to fees paid by the reporting entity for the audit or review of the financial statements and for other services provided by the audit firm

The Board is expecting to approve EDs proposing amendments for for-profit and public benefit entities at a future meeting.

Public Sector Specific Financial Instruments

The Board approved the ED Public Sector Specific Financial Instruments (Proposed non-authoritative amendments to PBE IPSAS 41 Financial Instruments) and the accompanying Consultation Document with a 90-day comment period, subject to changes agreed by Board.

The proposed non-authoritative amendments clarify requirements for classifying, recognising, and measuring public sector specific financial instruments, such as:

• Monetary gold; 
• Currency in circulation;  
• International Monetary Fund (IMF) special drawing rights (SDRs); and 
• IMF quota subscriptions. 

IPSASB Conceptual Framework Update

The Board discussed and provided feedback on the draft comment letter on the IPSASB ED 81 Conceptual Framework Update: Chapter 3, Qualitative Characteristics and Chapter 5, Elements in Financial Statements.

The Board is expecting to approve the comment letter at its May 2022 meeting.

Low Emission Vehicle Credits

The Board agreed to comment on the IFRS Interpretation Committee (IFRIC) tentative agenda decision Negative Low Emission Vehicle Credits (IAS 37) and approved the related draft comment letter.

The IFRIC responded a query about a specific government programme to reduce carbon emissions that affects manufacturers/importers of vehicles. The IFRIC tentatively decided that, under that specific programme, an entity that produced/imported vehicles whose emissions exceed the government’s target has a present obligation that meets the definition of a liability under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

PBE Leases

The Board discussed and agreed on the approach to developing New Zealand modifications to IPSAS 43 Leases, as part of developing a PBE Standard based on IPSAS 43 Leases.

Modifications considered by the Board included clarification of the scope and as well as certain other modifications.

The Board will consider a draft ED for a new PBE Standard and an accompanying Consultation Document at a future meeting.

Next NZASB meeting

Thursday 12 May 2022.

This meeting summary 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).