NZASB Meeting 13-14 February 2020

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

General Presentation and Disclosures (formerly Primary Financial Statements)

The Board considered and provided feedback on the proposals in IASB ED/2019/7 General Presentation and Disclosures relating to the structure of the statement of profit and loss including the proposed subtotals, categories of income and expenses, and the classification of specific items within those categories.

The Board will consider the proposals regarding management performance measures, unusual income and expenses, aggregation and disaggregation, and amendments to other standards at a future meeting.

Amendments to PBE Standards

The Board approved for issue Withdrawal of PBE FRS 46 (Amendments to PBE FRS 47) and the related Revocation of PBE FRS 46. The amending standard and revocation are applicable to Tier 1 and Tier 2 public benefit entities (PBEs) and are effective from 1 January 2021, with early application permitted. PBE FRS 47, which has been renamed First-time Adoption of PBE Standards, will now be the sole standard for the first-time adoption of PBE Standards by Tier 1 and Tier 2 PBEs.

The Board also approved PBE Interest Rate Benchmark Reform, which amends various PBE Standards on financial instruments: PBE IPSAS 41, PBE IFRS 9, PBE IPSAS 29 and PBE IPSAS 30. This amending standard is applicable to Tier 1 and Tier 2 PBEs. The amendments are effective from 1 January 2020, with earlier application permitted. The objective of the amendments is to avoid situations where hedge accounting would need to be discontinued solely as a result of uncertainties related to the phasing out of interest-rate benchmarks such as interbank offered rates (IBORs).

Targeted Review of the New Zealand Accounting Standards Framework

The Board provided feedback on the proposed plan for the next phase of the Targeted Review of the New Zealand Accounting Standards Framework. The Board also provided feedback on the detailed analysis of the submissions received in relation to this project, which included the identification matters raised by respondents to be considered further by the XRB Board and/or the Board.

The Board will be updated on the progress of this project at a future meeting.

Tier 3 and Tier 4 post-implementation review

The Board agreed the project plan and outreach to be undertaken as part of the planned post-implementation review (PIR) of the PBE Tier 3 and Tier 4 Simple Format Reporting standards, guidance and templates.

The Board will be updated on the progress of this project at a future meeting.

Editorial corrections to NZ IFRS

The Board approved editorial corrections to NZ IFRS. These corrections are identical to editorial corrections issued by the International Accounting Standards Board in December 2019. They are available on the Accounting Standards Recent Approvals page on the XRB website.

Next NZASB meeting

Wednesday 25 March 2020 in Wellington.

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).