NZASB Meeting 4 November 2020

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

PBE Interest Rate Benchmark Reform—Phase 2

The Board approved for issue PBE Interest Rate Benchmark Reform—Phase 2, which amends:

• PBE IPSAS 41 Financial Instruments
• PBE IFRS 9 Financial Instruments
• PBE IPSAS 29 Financial Instruments: Recognition and Measurement and
• PBE IPSAS 30 Financial Instruments: Disclosures.

The amending standard is applicable to Tier 1 and Tier 2 public benefit entities and is effective for financial statements covering periods beginning on or after 1 January 2021. Early application is permitted.

The amendments address replacement issues that arise when interest rate benchmarks are replaced with alternative, nearly risk-free interest rates. The objective of the amendments is to assist entities in providing useful information to users of financial statements and to support preparers in applying PBE Standards when changes are made to contractual cash flows or hedging relationships because of the transition to alternative benchmark rates.

Policy Approach to Developing the Suite of PBE Standards (PBE Policy Approach)

The Board considered the application of the PBE Policy Approach to two amending standards recently approved for issue by the International Public Sector Accounting Standards Board (IPSASB).

• Amendments to IPSAS 41 Financial Instruments (Public Sector Specific Financial Instruments)

The Board agreed to propose to include in the Illustrative Examples and Implementation Guidance that accompany PBE IPSAS 41 Financial Instruments clarifications around the treatment of particular public sector specific financial instruments. An Invitation to Comment and Exposure Draft proposing the amendments to PBE IPSAS 41 will be considered by the Board at a future meeting.

• COVID-19: Deferral of Effective Dates

The Board noted that most of the deferrals in COVID-19: Deferral of Effective Dates are not relevant for PBE Standards and agreed not to defer the effective date of PBE IPSAS 41.

Business Combinations—Disclosures, Goodwill and Impairment

The Board considered its draft comment letter to the IASB on IASB Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment.

The Board will consider its final comment letter at the meeting on 17 December 2020.

Next NZASB meeting

Thursday 17 December 2020 (virtual).

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).