NZASB Update 14/2020

Michael Bradbury - Acting NZASB Chair  The NZASB Board and Staff are delighted to welcome Michael Bradbury PhD, FCA as the Acting Chair of the NZASB until a permanent Chair is appointed by the XRB at the end of the year.

An XRB board member since 2016, Michael comes with a wealth of standard-setting experience having served on the Financial Reporting Standards Board (FRSB) for 10 years. Internationally he has represented New Zealand at the IASB, with membership on the IFRS Interpretations Committee (2004-2008), and on the IFRS Advisory Council from 2012-2014.

Michael is currently a Research Professor at Massey University in Albany with research interests in corporate financial reporting, financial analysis and governance. More recently he has been investigating public sector data pertaining to local councils.

Prior to Michael’s academic career he was a chartered accountant in a large accounting firm in Auckland and London.

Changing the face of the statement of profit or loss — consultation closing soon

Applies to:

Applies to: For-profit

In response to investor demand for improved financial performance reporting, the International Accounting Standards Board (IASB) has proposals out for comment for a new IFRS Standard to replace IAS 1 Presentation of Financial Statements.

The proposals aim to improve how information is communicated in the financial statements, with a focus on information about performance in the statement of profit or loss.

Key proposals:

1. new defined subtotals in the statement of profit or loss (including an operating profit or loss subtotal);
2. defined income and expense categories in the statement of profit or loss (operating, investing, financing and integral associates and joint ventures);
3. operating expenses analysed by nature or function in statement of profit or loss, and by nature in a note if analysed by function in statement of profit or loss;
4. requirements for entities to identify and explain in the notes any unusual income or expenses; and
5. management performance measures defined, brought together in a single note within scope of audit. 

The proposals will affect all entities reporting in accordance with IFRS Standards.

Many entities that currently present an EBIT⁽¹⁾ or EBITDA⁽²⁾ subtotal in their statement of profit or loss will find that under the proposals they would no longer be able to do so.

The NZASB is seeking your feedback on these proposals in IASB Exposure Draft: General Presentation and Disclosures.

We need your feedback to the NZASB by 7 August 2020 (this Friday).

Tell us what you think

(1)  Earnings before interest and taxes.
(2)  Earnings before interest, taxes, depreciation and amortisation.

COVID-19: The Implications for Financial Reporting and Audit in the Public Sector

Applies to: Public Sector

A recording is now available of the 15 July webinar—jointly hosted by the XRB and Victoria University of Wellington's Centre for Accounting, Governance and Taxation Research.

This webinar discusses the significant implications of the pandemic crisis and economic recovery for financial reporting and audit issues in the public sector—such as fair value measurement, impairment of assets, leases, expected credit loss assessment, subsequent events, revenue recognition, assessment of going concern, and audit reporting.

This webinar includes a panel discussion on the above issues hosted by chaired by Ian Ball with Angela Ryan and Francis Caetano focussing on financial reporting by central and local government entities respectively and Stephen Walker and Robert Cox commenting on audit issues for both central and local government.

Watch the recording here

Have your say... 

Before issuing a finalised accounting standard the NZASB and the international standard-setting boards, the IASB and the IPSASB, issue consultation documents. These documents seek your feedback on proposals that could potentially affect you.

We are currently consulting on the matters set out in the table below. 

Tell us how these changes could affect your entity or the entities you work with.

We welcome your comments and feedback, either formal or informal, by the due dates below.

NZASB Consultation Documents

IASB Consultation Documents

IPSASB Consultation Documents