NZASB Meeting 10 September 2020

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

Tier 3 and Tier 4 Post-implementation Review

The Board considered and approved for issue a Request for Information (RFI) for the post‑implementation review (PIR) of the Tier 3 and Tier 4 Simple Format Reporting standards for public sector and not-for-profit entities. The Board also approved for issue two separate one-page summaries, one for public sector entities and one for not-for-profit entities, that set out what the PIR is about, what information the Board is looking for, and reinforcing that all comments received will be considered by the Board.

The RFI will be open for comment for a period of six months, with comments due to the NZASB by 31 March 2021. An online survey based primarily on the questions in the RFI will also be developed.

IPSASB Revenue and Transfer Expenses

The Board considered a draft comment letter to the IPSASB on ED 70 Revenue with Performance Obligations, ED 71 Revenue without Performance Obligations and ED 72 Transfer Expenses.

Once the Board has considered feedback from New Zealand constituents it will finalise the comment letter. This will occur at a Board meeting on 15 October. Submissions to the NZASB are due by 23 September 2020 and to the IPSASB by 1 November 2020.

Primary Financial Statements

The Board considered and approved a draft comment letter to the IASB on Exposure Draft ED/2019/7 General Presentation and Disclosures under its Primary Financial Statements project.

Amending Standard Approved – Tier 1 and Tier 2 For-profit Entities

The Board approved Interest Rate Benchmark Reform—Phase 2. The amending standard addresses issues affecting financial statements when changes are made to contractual cash flows and hedging relationships due to interest rate benchmarks being replaced with alternative benchmark rates. The amending standard makes amendments to NZ IFRS 9 Financial Instruments, NZ IAS 39 Financial Instruments: Recognition and Measurement, NZ IFRS 7 Financial Instruments: Disclosures, NZ IFRS 4 Insurance Contracts, and NZ IFRS 16 Leases.

Interest Rate Benchmark Reform—Phase 2 is effective for annual reporting periods beginning on or after 1 January 2021, with earlier application permitted.

Exposure Draft and Invitation to Comment Approved – Tier 1 and Tier 2 Public Benefit Entities

The Board considered the application of the Policy Approach for Developing the Suite of PBE Standards (the PBE Policy Approach) to Interest Rate Benchmark Reform—Phase 2 and agreed to propose equivalent amendments to PBE Standards.

The Board considered and approved for issue NZASB ED 2020-5 PBE Interest Rate Benchmark Reform—Phase 2 and the accompanying Invitation to Comment. The Board agreed a comment period of 45 days, with comments closing on 26 October 2020.

Next NZASB meeting

Thursday 15 October 2020 (10.00 am –11.30 am to approve the comment letter to the IPSASB on EDs 70–72).

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).