Standard, Amendment or Interpretation

Summary of Requirements

Effective date - periods beginning on or after

Amendments to NZ IAS 32 Financial Instrument: Presentation – Classification of Rights Issues

The amendments allows rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be classified as equity instruments provided the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments

1 February 2010

Amendments to NZ IFRS 1 First-time Adoption of NZ IFRSs –  Limited Exemption from Comparative NZ IFRS 7 Disclosures for First-time Adopters

The amendment provides the same relief to first-time adopters as was given to current users of NZ IFRSs upon adoption of the Amendments to NZ IFRS 7. The amendment also clarifies the transitional provisions of the Amendments to NZ IFRS 7.

1 July 2010

NZ IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

This interpretation provides guidance on the accounting for debt for equity swaps.

1 July 2010

Improvements to NZ IFRSs 2010 – Amendments to NZ IFRS 3 Business Combinations

The amendments:

·     clarify that contingent consideration arising in a business combination previously accounted for in accordance with NZ IFRS 3 (2004) that remains outstanding at the adoption date of NZ IFRS 3 (2008) continues to be accounted for in accordance with NZ IFRS 3 (2004);

·     limit the accounting policy choice to measure non-controlling interests upon initial recognition at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets to instruments that give rise to a present ownership interest and that currently entitle the holder to a share of net assets in the event of liquidation; and

·     expand the current guidance on the attribution of the market-based measure of an acquirer’s share-based payment awards issued in exchange for acquiree awards between consideration transferred and post-combination compensation cost when an acquirer is obliged to replace the acquiree’s existing awards

1 July 2010

Improvements to NZ IFRSs 2010 – Amendments to NZ IAS 27 Consolidated and Separate Financial Statements

The amendments clarify that the consequential amendments to NZ IAS 21 The Effects of Changes in Foreign Exchange Rates, NZ IAS 28 and NZ IAS 31 resulting from NZ IAS 27 (2008) should be applied prospectively, with the exception of amendments resulting from renumbering.

1 July 2010

Improvements to NZ IFRSs 2010 – NZIFRS 1 First-time Adoption of IFRSs

The amendments:

·     clarify that NZ IAS 8 is not applicable to changes in accounting policies occurring during the period covered by an entity’s first NZ IFRS financial statements;

·     introduce guidance for entities that publish interim financial information under NZ IAS 34 Interim Financial Reporting and change either their accounting policies or use of the NZ IFRS 1 exemptions during the period covered by their first NZ IFRS financial statements;

·     extend the scope of paragraph D8 of NZ IFRS 1 so that an entity is permitted to use an event-driven fair value measurement as deemed cost for some or all of its assets when such revaluation occurred during the reporting periods covered by its first NZ IFRS financial statements; and

·     introduce an additional optional deemed cost exemption for entities to use the carrying amounts under previous NZ GAAP as deemed cost at the date of transition to NZ IFRSs for items of property, plant and equipment or intangible assets used in certain rate-regulated activities.

1 January 2011

Improvements to NZ IFRSs 2010 – NZ IFRS 7 Financial Instruments: Disclosures

The amendments add an explicit statement that qualitative disclosure should be made in the contact of the quantitative disclosures to better enable users to evaluate an entity’s exposure to risks arising from financial instruments. In addition, the IASB amended and removed existing disclosure requirements.

1 January 2011

Improvements to NZ IFRSs 2010 – NZ IAS 1 Presentation of Financial Statements

The amendments clarify that disaggregation of changes in each component of equity arising from transactions recognised in other comprehensive income also is required to be presented, but may be presented either in the statement of changes in equity or in the notes.

1 January 2011

Improvements to NZ IFRSs 2010 – NZ IAS 34 Interim Financial Reporting

The amendments add examples to the list of events or transactions that require disclosure under NZ IAS 34 and remove references to materiality in NZ IAS 34 that describes other minimum disclosures.

1 January 2011

Improvements to NZ IFRSs 2010 – NZ IFRIC 13 Customer Loyalty Programmes

The amendments clarify that the fair value of award credits takes into account the amount of discounts or incentives that otherwise would be offered to customers that have not earned the award credits.

1 January 2011

Amendments to NZ IFRIC 14: NZ IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

These amendments remove unintended consequence arising from the treatment of prepayments when there is a minimum funding requirement. These amendments result in prepayments of contributions in certain circumstances being recognised as an asset rather than an expense.

1 January 2011

NZ IAS 24 Related Party Disclosures (revised 2009)

The revised NZ IAS 24 amends the definition of a related party and modifies certain related party disclosure requirements for government-related entities

1 January 2011

NZ IAS 26 Accounting and Reporting by Retirement Benefit Plans

The Amendments to NZ IAS 26 remove a number of New Zealand specific requirements, including most of the New Zealand specific scope paragraphs.

The Amendments to NZ IAS 26 also give effect to amendments to align the terminology in the Standard with that in IAS 26 Accounting and Reporting by Retirement Benefit Plans.

1 April 2011

Amendments to NZ IFRS 7 Financial Instruments: Disclosures – Transfer of Financial Assets

The amendments require additional disclosures about transfer of financial assets to enable users of financial statements,

·     to understand the relationship between transferred financial assets that are not derecognised in their entirety and the associated liabilities; and

·     to evaluate the nature of, and risks associated with, the entity’s continuing involvement in derecognised financial assets.

An entity is not required to provide the disclosures for any period that begins prior to 1 July 2011.

1 July 2011

Amendments to NZ IAS 12 Income Taxes

The amendment introduces an exception to the current measurement principles based on the manner of recovery in paragraph 52 of NZ IAS 12 for investment property (including those acquired in a business combination accounted for in accordance with NZ IFRS 3 Business Combinations) measured using the fair value model in accordance with NZ IAS 40 Investment Property.

The amendment introduces a presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale.

1 January 2012

NZ IFRS 9 Financial Instruments (2010)

NZ IFRS 9 is the standard issued as part of a wider project to replace NZ IAS 39.

NZ IFRS 9 (2009) retained but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortised cost and fair value.

The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset.

NZ IFRS 9 (2010) retained the requirements with respect to the classification and measurement of financial liabilities with the exception of fair value option and certain derivatives linked to unquoted equity instruments.

Additionally, NZ IFRS 9 (2010) also retained the recognition requirements of NZ IAS 39.

The guidance in NZ IAS 39 on impairment of financial assets and hedge accounting continues to apply.

Application of transitional provisions depends on an entity’s adoption date of NZ IFRS 9 (2009) and NZ IFRS 9 (2010).

Prior periods need not be restated if an entity adopts the standards for reporting periods beginning before 1 January 2012.

1 January 2013