Approval of Financial Reporting Standards
The Board approved the following new standards and amendments.
- Amendments to FRS-43 Summary Financial Statements- these amendments clarify the application of FRS-43 to multi-period financial statements, including five-year summaries presented in accordance with the Securities Regulations 2009.
- Amendments to FRS-44 New Zealand Additional Disclosures- This amendment corrects an inadvertent removal of disclosures required in condensed interim financial statements.
- NZ IFRS 10 Consolidated Financial Statements- this standard establishes principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.
- NZ IAS 27 Separate Financial Statements- this standard contains accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. It requires an entity preparing separate financial statements to account for those investments at cost or in accordance with NZ IFRS 9 Financial Instruments.
- Amendments to IFRS-11 Joint Arrangements- this standard establishes principles for financial reporting by parties to a joint arrangement.
- NZ IAS 28 Investments in Associates and Joint Ventures-this standard prescribes the accounting for investments in associates and sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
- NZ IFRS 12 Disclosure of Interests in Other Entities-the objective of this standard is to require an entity to disclose information that enables users of its financial statements to evaluate (a) the nature of, and risks associated with, its interest in other entities; and (b) the effects of those interests on its financial position, financial performance and cash flows. Entities are required to make the disclosures for its interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities.
- NZ IFRS 13 Fair Value Measurement- this standard defines fair value and sets out in a single NZ IFRS a framework for measuring fair value and requires disclosures about fair value measurements.
Transition to the External Reporting Board (XRB)
This was the final meeting of the ASRB in its current form, the first meeting of the XRB will be held on Friday 1 July 2011.
The Board considered drafts of a number of documents that the XRB intends to approve in its first meeting. Those documents included overarching XRB Standards and related Explanatory Guides outlining which accounting standards entities must use to comply with NZ GAAP, and which auditing and assurance standards providers must follow when conducting assurance engagements. These documents will replace existing guidance, but contain substantially the same content.
Accounting Standards Framework
The Board noted that it is ready to issue its Position Paper explaining the rationale for its multi-standards approach decision and the two related Consultation papers (one outlining the proposed framework for for-profit entities and one for PBEs). These will be released immediately after the Government’s decisions are announced, which is expected to be towards the end of July.
Not-For-Profit Simple Format Working Group
The Board was advised that the Not-For-Profit Simple Format Working Group is currently preparing a report on the possible content of Simple Format Reports for tier 3 not-for-profit entities.