NZASB Update 5/2021

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In this NZASB Update we feature:

• Upcoming XRB leases webinar next Tuesday
• Two for-profit amending standards issued
• Tier 3 and 4 Post-implementation review — comment period closing soon!
• IASB ED on rate regulation – webinar recording now available

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Accounting for Leases in the Public Sector 

Webinar with IPSASB Program and Technical Director, Ross Smith

The IPSASB is currently consulting on how leases should be accounted for and is seeking information on other types of ‘lease-like’ arrangements that exist in the public sector.
  Join our webinar on 30 March 2021 to hear from Ross Smith – Program and Technical Director, IPSASB about the objectives of their work on this topic and their progress to date.

At this webinar you will also hear from XRB staff about the IPSASB’s recently issued:

• Exposure Draft (ED 75) which proposes to require public sector lessees to recognise most contractual lease obligations on the balance sheet (consistent with IFRS 16 Leases); and
• Request for Information (RFI) which is seeking feedback on the nature and current accounting treatment of concessionary leases and other “lease-like” arrangements that exist in the public sector.

[This event has now closed]

For more information on ED 75, the RFI, and how to provide feedback please refer to the link below. 

Have a look

Two amending standards issued that improve disclosure and clarify current requirements

The XRB has recently issued two amending standards:

• Disclosure of Accounting Policies, which amends NZ IAS 1 Presentation of Financial Statements; and
• Definition of Accounting Estimates, which amends NZ IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Both sets of amendments are equivalent to the amendments to IFRS Standards issued by the IASB in February 2021.

Disclosure of Accounting Policies

The amendments to NZ IAS 1 require entities to disclose their material accounting policy information rather than their significant accounting policies.

The amendments aim to improve the relevance of the information in the financial statements by helping an entity to:

• identify and disclose accounting policy information that is material to users of financial statements; and
• remove immaterial accounting policy information that may obscure material accounting policy information.

The amendments aim to address feedback previously received from regulators and users of financial statements that New Zealand entities continue to have difficulties in identifying and disclosing material information about their accounting policies.

Have a look - Accounting Policies

Definition of Accounting Estimates

The amendments NZ IAS 8 clarify how accounting policies and accounting estimates relate to each other by

• explaining that accounting estimates are used in applying accounting policies; and
• making the definition of accounting estimates clearer and more concise.

Consequently, entities should find it easier to distinguish changes in accounting policies from changes in accounting estimates.

That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events.

Have a look - Accounting Estimates

Closing soon!

Tier 3 and Tier 4 Post‑implementation Review

In September 2020, the NZASB commenced a post-implementation review of the Tier 3 and Tier 4 standards, guidance and templates.

Your feedback is important to ensure these simple format reporting standards meet the reporting needs of smaller charities, other not-for-profit entities, and public sector entities who use these standards. 

There are three ways to provide your feedback. You can:

• complete our simple online survey;
• complete an online submission form; or
• send us written feedback, either as a formal submission letter or informally by email.

We want to hear from you!

Submissions close next week on 31 March 2021

There is more information on the post-implementation review, including links to the full request for information, as well as the current standards, guidance, and templates by clicking the link below.

Have a look

Webinar on IASB’s Rate regulation proposals

The IFRS Foundation held a webinar in February 2021 about the IASB’s recent ED Regulatory Assets and Regulatory Liabilities. The webinar provided an overview of the proposals together with a Q&A session.

The accompanying slide deck is available. 

Have a look

The deadline for comments on the Exposure Draft is 30 June 2021.

Have a look - IASB ED/2021/1

Consultation papers open for comment

The following consultation papers are currently open for comment.

We welcome your comments and feedback, either formal or informal, by the due dates below. You can submit your comments directly from the consultation page on our website following the links below.

NZASB Consultation Document

* Request for Information

IASB Consultation Documents

IPSASB Consultation Documents