NZASB Update 4/2021
This 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.
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).
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
- 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.
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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.
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).