NZASB Update 22/2020

Upcoming NZASB Meeting

17 December 2020 

The NZASB meeting will be a full day virtual meeting.

You can access the public agenda, public meeting papers and register to attend this meeting on our website.

The Board, in the public session, will:

• Discuss and finalise its draft comment letter on Business Combinations – Disclosures, Goodwill and Impairment;
• Approve the Editorial Corrections to NZ IFRS; and
• Receive an education session on Business Combinations under Common Control.

Have a Look

IASB DP: Business Combinations under Common Control 

The IASB is seeking feedback on the Discussion Paper Business Combinations under Common Control. 

Currently, IFRS Standards do not specify how to account for transfers of businesses between entities within the same group, known as “business combinations under common control”. Such transactions are common in New Zealand and around the world. To address this gap in the IFRS Standards and reduce diversity in practice, the IASB has issued a discussion paper setting out its preliminary views on how to account for these business combinations under common control.

The IASB’s brief video below summarises the content of the discussion paper.  

Have a look

We encourage you to read and comment on the discussion paper. 

Comments are due to the NZASB by 1 June 2021 and to the IASB by 1 September 2021. 

Comment here

IASB ED: Lease Liability in a Sale and Leaseback

 The IASB is seeking comments on their recently issued Exposure Draft Lease Liability in a Sale and Leaseback (ED/2020/4).

ED/2020/4 proposes to amend IFRS 16 Leases to specify how an entity measures the lease liability in a sale and leaseback transaction.

The proposed amendment provides greater clarity for the entity selling and leasing back an asset, both at the date of the transaction, and when subsequently reporting on that transaction.

The proposed amendment would not change the accounting for leases other than for this specific circumstance of sale and leaseback.

We encourage you to read ED 2020/4 and to comment on the proposals directly to the IASB as the NZASB will not be making a formal submission. 

Please send your comments to IASB, with a copy to the NZASB, by 29 March 2021. 

Comment here

IPSASB ED: Guidance on Borrowing Costs 

The IPSASB is seeking feedback on ED 74 IPSAS 5, Borrowing Costs – Non-authoritative Guidance (ED 74). 

ED 74 proposes to add non-authoritative implementation guidance and illustrative examples to IPSAS 5. The proposals aim to clarify how the existing principles in IPSAS 5 on the capitalisation of borrowing costs should be applied in the public sector context. ED 74 does not propose to amend the authoritative material in IPSAS 5. The objective of the proposals is to address some of the practical challenges identified by constituents when capitalising borrowing costs for qualifying assets. 

We encourage you to read ED 74 and to comment on the proposals directly to the IPSASB as the NZASB will not be making a formal submission. 

Please send your comments to IPSASB, with a copy to the NZASB, by 1 March 2021. 

Comment 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 Document 

* Request for Information

IASB Consultation Documents

IPSASB Consultation Document