In this publication, the standards, interpretations and amendments to standards and interpretations (collectively referred to as standards or requirements) are grouped into three parts:
- Part I Standards that are required to be applied in annual and interim periods ending on 30 June 2011.
- Part II Standards that are required to be applied in interim periods related to annual periods beginning on or after 1 January 2011. However, these standards are not required to be applied in annual periods ending on 30 June 2011, but can be early adopted unless otherwise indicated. Additional disclosures are required when such a standard is early adopted.
- Part III Standards that are not required yet to be applied in either interim or annual periods, but that can be early adopted. Additional disclosures are required when such a standard is early adopted.
New Zealand Amendments
Listed below are the New Zealand specific amendments which are not covered in the international In the Headlines publication.
Public Benefit Entities
The following newly approved standards are not required to be applied by Public Benefit Entities
- NZ IAS 27, Separate Financial Statements.
- NZ IAS 28, Investments in Associates, and Joint Ventures.
- NZ IAS 10, Consolidated Financial Statements.
- NZ IAS 11, Joint Arrangements.
- NZ IAS 12, Disclosure of Interest in Other Entities.
- NZ IAS 13, Fair Value Measurement.
New Zealand financial reporting standards and harmonisation amendments
FRS-44, New Zealand Additional Disclosures: This standard prescribes the New Zealand specific disclosures which are required in addition to those required under the New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs).
FRS-44 contains the New Zealand specific disclosure requirements which have been relocated from existing NZ IFRSs and have been retained because they are considered important in the New Zealand environment.
FRS-44 is effective for all annual reporting periods beginning on or after 1 July 2011, early adoption is permitted. If early adopted, an entity must also adopt the relevant requirements of Amendments to New Zealand equivalents to International Financial Reporting Standards and Australian Accounting Standards (Harmonisation Amendments) for the same period.
Harmonisation Amendments: Amendments to New Zealand Equivalents to International Financial Reporting Standards to Harmonise with International Financial Reporting Standards and Australian Accounting Standards.
This document sets out amendments to NZ IFRS as a result of proposals to harmonise New Zealand and Australian financial reporting standards.
The aim of the harmonisation is to eliminate the differences between accounting standards in Australia and New Zealand and create more comparability in financial reporting between the countries. As a result a number of NZ specific amendments have been removed or amended and are summarised below.
These amendments are effective for all annual reporting periods beginning on or after 1 July 2011, early adoption is permitted. If early adopted, an entity must also adopt the relevant requirements of FRS-44, New Zealand Additional Disclosures for the same period.
The following are the key changes occurring from the harmonisation amendments above:
|
NZ IFRS |
Summary of Harmonisation Amendment |
|
NZ IAS 1 |
Removes references to NZ GAAP, Differential Reporting, and the Financial Reporting Act 1993 and consolidates this into a single paragraph. Refer to the harmonisation amendments for further details. |
|
|
Allows the use of the ‘indirect’ method for the Statement of Cash Flows. Removes the requirement to provide a reconciliation between the profit (loss) and the cash flow from operating activities. |
|
NZ IAS 8 |
No material changes. |
|
NZ IAS 12 |
Removes the NZ specific reference to imputation credits and dividend withholding payment credits. |
|
NZ IAS 16 |
Removes the requirement for valuations to be performed by an independent valuer, or qualified staff member. |
|
NZ IAS 20 |
Removes the requirement for profit orientated entities to disclose the fair value of non-monetary government grant at the time of receipt. |
|
NZ IAS 28 |
Removes the extra disclosures required when using the equity method. |
|
NZ IAS 31 |
No material changes. |
|
NZ IAS 34 |
Inserted wording encouraging entities to provide interim financial reports. Removed certain NZ requirements to be disclosed in interim financial reports. Refer to the harmonisation amendments for further details. |
|
NZ IAS 40 |
Exceptions for differential reporting entities have been narrowed to paragraphs indicated with an asterisk. All entities are now able to use either the fair value model or the cost model, further disclosures have been reintroduced supporting the cost model. Asset valuations are no longer required to be performed by a registered valuer, however they are still encouraged to use a registered valuer. |
Amendments to NZ IFRS 7 Financial Instruments: Disclosures Amendments to Appendix E New Zealand-specific additional disclosure requirements.
This amendment has replaced the term ‘financial institution’ has been replaced with ‘deposit taker’ as defined in the Reserve Bank of New Zealand Act 1989.
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