NZASB Meeting 13 August 2020

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

IPSASB Revenue and Transfer Expenses 

The Board considered the disclosure requirements across ED 70 Revenue with Performance Obligations, ED 71 Revenue without Performance Obligations and ED 72 Transfer Expenses.  

The Board also considered a draft comment letter to the IPSASB. The draft comment letter will be considered further at a future meeting. 

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

The Board approved the following amending standards. 

• Going Concern Disclosures (Amendments to FRS-44), which introduces more specific going concern disclosures in circumstances where an entity’s going concern assessment has involved significant judgement and/or the consideration of material uncertainties. The amendments are effective for annual periods ending on or after 30 September 2020. Earlier application is permitted. 

• Amendments to NZ IFRS 17, which incorporates equivalent amendments made by the IASB to IFRS 17 Insurance Contracts. The amendments also defer the effective date of NZ IFRS 17 by two years, from 1 January 2021 to 1 January 2023. Earlier application is permitted. 

• Extension of the Temporary Exemption from Applying NZ IFRS 9, which amends NZ IFRS 4 to extend the exemption for issuers of insurance contracts from applying NZ IFRS 9. This exemption now expires on the same date as NZ IFRS 17 becomes effective (that is, from 1 January 2023). 

• Classification of Liabilities as Current or Non-current—Deferral of Effective Date. This amending standard defers the effective date of Classification of Liabilities as Current or Non-current, issued in April 2020, by one year from 1 January 2022 to 1 January 2023. Earlier application is permitted. 

Amending Standards Approved – Tier 1 and Tier 2 PBEs 

The Board approved the following amending standards. 

• Going Concern Disclosures (Amendments to PBE IPSAS 1) which introduces more specific going concern disclosures in circumstances where an entity’s going concern assessment has involved significant judgement and/or the consideration of material uncertainties. The amendments are effective for annual financial periods ending on or after 30 September 2020. Earlier application is permitted. 

• 2020 Amendments to PBE FRS 48, which defers the effective date of PBE FRS 48 Service Performance Reporting by one year, from 1 January 2021 to 1 January 2022. The amending standard also makes minor amendments to clarify some of the requirements in PBE FRS 48. Entities can still choose to early adopt the standard.  

• Amendments to PBE IFRS 17, which incorporates the IASB’s amendments to IFRS 17 into PBE IFRS 17. The amendments also defer the effective date of PBE IFRS 17 Insurance Contracts by one year, from 1 January 2022 to 1 January 2023. Earlier application is permitted. 

Next NZASB meeting 

Thursday 10 September 2020.  

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).