NZASB Meeting 17 June 2020

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

IPSASB Revenue and Transfer Expenses

The Board considered and provided feedback on the proposals in ED 72 Transfer Expenses.

The Board will consider the disclosure requirements across ED 70 Revenue with Performance Obligations, ED 71 Revenue without Performance Obligations and ED 72 at a future meeting.

Goodwill and Impairment

The Board considered and provided feedback on the proposed disclosures and certain other matters in IASB DP/2020/1 Business Combinations—Disclosures, Goodwill and Impairment.

A draft comment letter will be considered at a future meeting.

Primary Financial Statements

The Board considered and provided feedback on a draft comment letter on IASB ED/2019/7 General Presentation and Disclosures.

The comment letter will be finalised at a future meeting, taking into consideration any feedback received from New Zealand constituents.

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

The Board approved the following amending standards, all of which are effective for annual reporting periods beginning on or after 1 January 2022 (with early application permitted).

• Reference to the Conceptual Framework, which amends NZ IFRS 3 Business Combinations by replacing a reference to an older conceptual framework with a reference to the most recent conceptual framework.
• Onerous Contracts—Cost of Fulfilling a Contract, which amends NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify which costs an entity includes in determining the cost of fulfilling a contract, for the purpose of assessing whether the contract is onerous.
• Annual Improvements to NZ IFRS 2018–2020, which makes minor amendments to NZ IFRS 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards, NZ IFRS 9 Financial Instruments and NZ IAS 41 Agriculture.
• Property, Plant and Equipment—Proceeds before Intended Use, which amends NZ IAS 16 Property, Plant and Equipment to prohibit a reporting entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the entity is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related costs in profit or loss.

Next NZASB meeting

Thursday 13 August 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).