NZASB Update 6/2020

NZASB Meeting review, New Amending Standard, COVID-19 information...

Our NZASB Update provides you with an overview of the New Zealand Accounting Standards Board’s recent activities, any new standards or interpretations, as well as other matters of interest.

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Recent NZASB Meeting

1 April 2020

NZASB icon

 

Applies to:

For-profitNot-for-profitPublic Sector

You can access the meeting papers, now posted to the XRB website.

The postponed March Board meeting was held via videoconference.

The NZASB:

  • considered proposals in the three IPSASB exposure drafts (EDs):
    • ED 70 Revenue with Performance Obligations;
    • ED 71 Revenue without Performance Obligations; and
    • ED 72 Transfer Expenses.
  • considered proposals in the IASB ED General Presentation and Disclosures;
  • approved the NZ IFRS amending standard Classification of Liabilities as Current and Non‑current; and
  • noted the annual review of the application of the PBE Policy Approach[1]. 

 Have a look

[1]  Policy Approach to Developing the Suite of PBE Standards, December 2018. 

NZ IFRS amending standard issued: Classification of Liabilities as Current or Non‑current

Classification of Liabilities cover

 

Applies to:

For-profit

 

The NZASB has issued Classification of Liabilities as Current or Non-current which amends NZ IAS 1 Presentation of Financial Statements. 

The amendments clarify whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current.

The amendments are applicable for annual reporting periods beginning on or after 1 January 2022 with early application permitted. 

 Have a look

XRB website features Financial Reporting and Auditing Resources on COVID-19

Covid19 image

 

Applies to:

For-profitNot-for-profitPublic Sector

 COVID-19 is an unprecedented global pandemic that is currently impacting the operations of many reporting entities across all sectors in New Zealand. Preparers, auditors and those charged with governance will need to consider the current impact and emerging risks arising from the COVID-19 pandemic in the financial statements of the organisations they are involved with.

On our new XRB webpage we have provided a range of useful financial reporting and auditing resources to assist preparers and auditors during this period of significant disruption to business as usual and increased uncertainty of the impact and response to COVID-19.

As new materials and guidance become available, we will update our COVID-19 webpage, so we encourage you to revisit our page regularly.

Have a look

 Within these resources we highlight the recent response from the staff at the IPSASB being the COVID‑19 Relevant IPSASB Accounting Guidance written as a “Q and A”.

The objective of this document is to indicate the accounting implications of COVID-19-related government initiatives on central governments and other public sector entities, including how IPSAS and other IPSASB guidance deal with transactions and events which arise because of the pandemic.

IPSASB COVID-19 Guidance

Application of IFRS 16 Leases in the light of COVID-19 uncertainty

Covid19 image

 

Applies to:

For-profit

The IFRS Foundation has published educational material highlighting requirements within IFRS 16 Leases and other IFRS Standards that are relevant for companies considering how to account for the rent concessions granted as a result of the COVID-19 pandemic.

The educational material is relevant to Tier 1 and Tier 2 for-profit entities applying NZ IFRS 16 Leases.

The educational material does not change, remove, nor add to, the requirements in IFRS Standards. It is intended to support the consistent and robust application of IFRS 16.

Have a look

Have your say…

Have your say icon

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.

You can submit your comments directly from the Exposure Draft pages on our website following the links below.

IASB Consultation Document

For-profit

IPSASB Consultation Documents

Not-for-profitPublic Sector

There are no current domestic consultations. 

This NZASB Update is intended to provide subscribers with a summary of the recent activities of the New Zealand Accounting Standards Board (NZASB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board and its sub-Board the NZASB do not guarantee, and accept no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.

This NZASB Update 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).
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