Accounting Standards Board Meeting 18 October 2022

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

Lease Liability in a Sale and Leaseback

The Board approved for issue Lease Liability in a Sale and Leaseback. The amendments to NZ IFRS 16 Leases add requirements explaining how an entity accounts for a sale and leaseback after the date of the transaction.

These amendments are effective for reporting periods beginning on or after 1 January 2024. The new amending standard can be found  here.

PBE IFRS 17 Insurance Contracts

The Board considered comments received from stakeholders on AASB ED 319/NZASB ED 2022-3 Insurance Contracts in the Public Sector and

• confirmed:
  • the proposed modifications (exemptions) from sub-grouping insurance contracts into onerous versus non-onerous groups and by annual cohort of insurance contracts issued;
  • the proposed modification in respect of initial recognition of onerous insurance contracts;
  • the changes needed to the explanatory text about indicators for determining the public sector arrangements that are within the scope of the Standard;
  • the matters to note in the Basis for Conclusions regarding risk adjustments in measuring insurance liabilities; and
• decided to:
  • proceed with the proposed guidance on coverage periods;
  • provide an accounting policy choice for applying the Premium Allocation Approach; and
  • proceed with modified proposed disclosure requirements about pricing

The Board also considered stakeholders feedback on reporting by captive insurers, and on regulatory and other matters and decided not to make and further modifications of the standard requirements.

Natural Resources

The Board approved the comment letter on the IPSASB CP Natural Resources.

You can view the comment letter here.

Next NZASB meeting

Tuesday 13 December 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).