NZASB Update 18/2020

Recent NZASB Meeting

10 September 2020

The NZASB meeting was a full day virtual meeting.

The Board discussions on for-profit items included:

• approval of its draft comment letter on Primary Financial Statements¹and
• approval of the amending standard Interest Rate Benchmark Reform— Phase 2

The Board discussions on public benefit entity (PBE) items included:

• consideration of its draft comment letter on the three IPSASB Exposure Drafts (EDs) on Revenue and Transfer Expenses;
• approval of the Request for Information for the Tier 3 and 4 Post-implementation Review; and
• approval of the Invitation to Comment and ED for PBE Interest Rate Benchmark Reform— Phase 2.

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

Have a look

[1] IASB ED/2019/7 General Presentation and Disclosures.

PBE Interest Rate Benchmark Reform—Phase 2

The NZASB is seeking feedback on proposals to amend PBE Standards to address replacement issues associated with interest rate benchmark reform (also referred to as IBOR reform).

There has been a global benchmark reform which has led to some interest rate benchmarks, such as interbank offered rates, being reformed or discontinued. The proposed amendments complement those issued earlier this year (the Phase 1 amendments) and focus on the effects on financial statements when an entity replaces an interest rate benchmark with an alternative benchmark rate as a result of the reform.

The proposed Phase 2 amendments to PBE Standards set out some practical expedients and exceptions to address IBOR replacement issues, such as potential derecognition of financial instruments and potential disruption to hedge accounting relationships.

The Phase 2 amendments also propose some disclosures about risks arising from the reform and how an entity is managing the transition to alternative benchmark rates.

The NZASB would like your feedback on these proposals by 26 October 2020. The shorter comment period is due to the urgency of the proposed amendments for those entities impacted by interest rate benchmark reform.

Read more

Goodwill and impairment: Webinar and Outreach Event

The NZASB is seeking feedback on the IASB’s Discussion Paper Business Combinations – Disclosures, Goodwill and Impairment.

Accounting for goodwill is a topic that has been subject to continued debate for many years—ever since amortisation of goodwill was removed and replaced by a mandatory annual impairment test.

We want to hear your views on these matters, as the IASB’s deliberations could lead to major changes to how for-profit entities in New Zealand are required to account for goodwill and the required disclosures of business acquisitions.

Comments on the Discussion Paper are due to the NZASB on 2 November 2020 and to the IASB by 31 December 2020.

Have your say

We are also planning two events:

Webinar

Register here

Outreach event – a discussion with the IASB  

For those who want an opportunity to hear more about the Discussion Paper and provide feedback directly to the IASB, you can also join us for our online Goodwill and Impairment Outreach Event on 13 October 2020. 

Register here

IASB Webinar: Recording available

If you missed the IASB's most recent webinar on 21 August 2020, there is now a recording available. The session lasted approximately 45 minutes, including questions and answers.

The webinar presented the proposals for management performance measures included in IASB ED 2019/7 General Presentation and Disclosures. It was the fourth and final webinar in the series.

View the recording

or visit the IASB’s YouTube channel where you will find the other webcasts and podcasts.

Comments on the ED direct to the IASB close on 30 September 2020. Comments to the NZASB have already closed.

IFASS Presentation on Going Concern

The International Forum of Standard Setters (IFASS) will hold its virtual conference on 30 September and 1 October 2020.

IFASS offers a platform for standard setters around the world to discuss current issues and latest developments in IFRS Standards.

The NZASB, along with the Australian Accounting Standards Board (AASB), have been asked to present on Going Concern issues to this forum.

View the IFASS Agenda

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.

IASB Consultation Documents

* Note: the due date for comments to the NZASB has been extended to 2 November 2020.

IPSASB Consultation Documents

NZASB Consultation Document