NZASB Meeting 16 December 2021

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

Standard approved for issue

The Board approved for issue Initial Application of NZ IFRS 17 and NZ IFRS 9—Comparative Information, which amends NZ IFRS 17 Insurance Contracts.

Post-implementation Review of Tier 3 and Tier 4 PBE Standards

The Board:

(a)     noted the status of the issues identified as requiring standard-setting activity;

(b)     considered proposals to address concerns raised by respondents regarding the required minimum categories for revenue, expenses, assets and liabilities; and

(c)      provided direction to staff for the development of an invitation to comment (ITC) and exposure draft (ED) for proposals to amend the Tier 3 and Tier 4 Simple Format Reporting Standards.

The Board will consider a draft ITC and ED at a future meeting.

Definition of Public Accountability

The Board noted challenges arising in certain circumstances when applying the definition of public accountability in XRB A1 Application of the Accounting Standards Framework for the purpose of determining whether an entity has Tier 1 reporting requirements. The Board tentatively decided to commence a project to consider amendments to XRB A1 to help clarify the application of the existing definition of public accountability.

Auditor Remuneration

The Board agreed to commence a project to develop enhanced audit fee disclosure requirements by proposing amendments to its domestic standards for for-profit and public benefit entities. The NZASB had previously agreed to complete this project in conjunction with the AASB but at this meeting agreed to move forward and issue proposals ahead of the AASB completing its auditor remuneration disclosure project

Public Sector Insurance

The Board considered a draft ITC and ED proposing amendments to PBE IFRS 17 Insurance Contracts for public sector entities. An ITC and ED will be tabled for approval to issue for comment at the February 2022 Board meeting.

Subsidiaries without Public Accountability: Disclosures

The Board approved its comment letter to the International Accounting Standards Board (IASB) on IASB ED/2021/7 Subsidiaries without Public Accountability: Disclosures.

Next NZASB meeting

Wednesday 16 February 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).