NZASB Update 4/2021

In this NZASB update we feature:

• A webinar on Accounting for Leases in the Public Sector; and

• A virtual event with IASB Vice-Chair Sue Lloyd on Accounting for mergers and acquisitions within the same group.

Accounting for Leases in the Public Sector 

Public sector financial statements are critical for supporting robust decision making and accountability. These benefits are reliant on the rigor and precision of the information presented.

This includes ensuring that users are provided with relevant and faithfully representative information about lease transactions.

In its work toward that objective, the International Public Sector Accounting Standards Board (IPSASB) is currently looking at how leases and other ‘lease-like’ arrangements in the public sector are accounted for.

Join our webinar on 30 March to hear more about the IPSASB’s recently issued:

• Exposure Draft which would require public sector lessees to recognise most contractual lease obligations on the balance sheet; and
• Request for Information on the nature and accounting treatment of concessionary leases and other “lease-like” arrangements common in the public sector.

This event has now closed.

Accounting for mergers and acquisitions within the same group

Virtual Event with IASB Vice-Chair, Sue Lloyd

Mergers and acquisitions within the same group occur on a regular basis in New Zealand as part of corporate group restructures. Currently, IFRS Standards do not specify how the restructure of entities within the same group should be accounted for.

Consequently, entities are currently accounting for these transactions in different ways, leading to inconsistent reporting across the for-profit sector. This presents challenges for users of financial statements when assessing the impact of the merger or acquisition. This assessment is of particular importance for investors who hold a minority interest in an entity.

Potential changes ahead

In response to these challenges, the IASB has recently published a Discussion Paper (DP).  This DP explores options for introducing new reporting requirements for mergers and acquisitions within the same group — referred to as Business Combinations Under Common Control (BCUCC).   

Have a look

This IASB project will likely result in the introduction of new mandatory reporting requirements on BCUCC for for-profit entities in New Zealand. Therefore, your feedback on this DP is important.

This topic will be of interest to:

• Accountants and auditors
• Group restructuring consultants
• CFOs involved in BCUCC transactions
• Investors
• Financial analysts

Upcoming virtual event

The XRB is currently seeking views to help inform our feedback to the IASB on the DP.  This is your opportunity to hear directly from the IASB Vice-Chair, Sue Lloyd, and IASB Project Lead, Yulia Feygina, about this DP and share your views.

This event has now closed.

Providing your comments

Please send us your comments on the IASB Discussion Paper by 1 June 2021. Your comments will inform our submission to the IASB later this year.

Information on how to make a submission 

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