NZASB Update 20/2020

COVID-19: Interim Financial Reporting

Many New Zealand entities publish half-yearly interim financial reports to provide an update on operating developments and changing circumstances since the entities most recent annual financial report.

These interim financial reports may be the first financial report released by an entity post COVID-19, and therefore will be the first place where investors, resource providers and other stakeholders are provided with information on its impact.

What are the requirements for reporting on significant events in interim financial reports?

NZ IAS 34 Interim Financial Reporting and PBE IAS 34 Interim Financial Reporting require the interim financial report to explain:

• significant events and transactions not reported in the last annual financial report; and
• events after the interim period and before the interim report’s approval.

For entities preparing interim financial reports in 2020 the disclosures will include consideration of the impact of COVID-19 on the reporting entity. This may include information on the entity’s ability to continue as a going concern, the effect on the valuation and impairment of assets, and the impact on the entity’s obligations such as financing arrangements.

Disclosures should also be considered for any changes in significant judgements and assumptions made by management, including areas of uncertainty, and material changes in business activities and operations.

Users will expect more than the usual update in the interim financial reports as COVID‑19 and its ongoing economic effects have had a pervasive impact on many entities.

Have a look at NZ IAS 34

Have a look at PBE IAS 34

Upcoming NZASB Meeting

4 November 2020 in Auckland

The NZASB meeting will be a full day meeting.

You can access the public agenda, public meeting papers and register to attend in person as an observer at this meeting on our website.

The Board will consider and discuss the following for-profit item:

• its draft comment letter on Business Combinations – Disclosures, Goodwill and Impairment.

The Board will consider and discuss the following public benefit entity (PBE) items:

• the revised PBE Policy Approach and its application to recently approved IPSAS pronouncements:
  • Public Sector Specific Financial Instruments;^[1]
  • COVID-19: Deferral of Effective Dates; and
• approval of the new amending standard PBE Interest Rate Benchmark Reform – Phase 2.

Have a look

[1] The amending standard is called Amendments to IPSAS 41, Financial Instruments.

Recent NZASB Meeting

15 October 2020

The NZASB met for a short virtual meeting from 10am to 11.30am to discuss and approve its comment letter on the three IPSASB Exposure Drafts on Revenue and Transfer Expenses.

You can access the public agenda, public meeting papers and the meeting highlights on our website.

Have a look

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 Document

* Request for Information

IASB Consultation Document

IPSASB Consultation Documents