Pitopito Kōrero

Proposed revisions to the Code 

We have recently submitted feedback to the International Ethics Standards Board for Accountants (IESBA) on their proposals concerning sustainability and Use of Experts and would like to thank those stakeholders who helped inform our submission.
Our submission has signaled support for the proposed revisions to the Code for sustainability and use of experts and for the IESBA’s fundamental premise that independence and ethical considerations for sustainability should be at the same high standard as financial audits.  We believe there is strong public interest in achieving consistent application of independence and ethical requirements and have commended the IESBA’s collaboration with other international standard setters (including the International Accreditation Forum and IAASB).
We responded to New Zealand stakeholder views that the proposals are long and complex by suggesting the sections on value chain, groups and sub-sections on Non-Assurance Services be removed.  We also recommended that the objectivity requirements in the use of experts proposals be limited to those experts who have responsibility and accountability within the external expert’s team.

XRB position on digital reporting

The XRB’s position paper on digital reporting highlights how digital financial reporting has the potential to support more informed decision making and welcomes the Government consulting on the possible introduction of mandatory digital financial reporting for entities that participate in financial markets.
We also suggest that digital corporate reporting should be implemented and regulated in technologically neutral ways to future-proof against rapid technological change.
Read the position paper here.

Renewable Electricity Contracts

The growing popularity of renewable electricity contracts, often structured as power purchase agreements (PPAs), has led to accounting challenges for entities transitioning to renewable energy sources.
To address these challenges the International Accounting Standards Board (IASB) is proposing targeted amendments to IFRS 9  Financial Instruments and IFRS 7 Financial Instruments: Disclosures.

The proposed amendments aim to:

1. Make it easier to apply the 'own-use' exception and cash flow hedge accounting in IFRS 9 to contracts for renewable electricity.

2. Introduce new disclosures in IFRS 7 to increase transparency of the effect of these contracts on an entity’s financial performance and future cash flows

We are keen to hear stakeholders views on the proposals  - particularly in relation to the additional disclosure requirements. We will be hosting a focus group in early July - to register interest in attending please email accounting@xrb.govt.nz. Read the IASB proposal here.

In brief   

Consultations

• Business Combinations—Disclosures, Goodwill and Impairment. Closes 14 June.

• Proposed updates to the PBE Conceptual Framework. Closes 21 June 2024.

• Review of Service Performance Information. Closes 17 July

• Contracts for Renewable Energy. Closes 18 July 2024.

• 2024 Omnibus Amendments to PBE Standards. Closes 15 August .

Events

• Review of Service Performance Information Consultation 13 June