New Zealand


  • Service: Audit, Advisory, Accounting Advisory Services
  • Type: Business and industry issue
  • Date: 30/08/2011

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Reporting news - 11RN02 

Welcome to KPMGs Reporting news, a regular summary of publications on reporting matters from KPMG.

Reporting news includes the following principal newsletters.


  • Reporting updates (formerly Flash reports) published by KPMG New Zealand, which focus on the application of IFRS in the New Zealand financial reporting environment, legislative and regulatory changes, and other New Zealand-specific reporting topics.


  • In the headlines published by the KPMG International Standards Group, which provide timely updates on developments concerning IFRS.


Reporting updates


No Reporting Updates this week.


In the headlines


Consolidation exception for qualifying investment entities


This issue of ITH focuses on the proposals in Exposure Draft Investment Entities issued by the IASB on 25 August 2011. The amendments propose that investment entities measure investments in controlled entities at fair value through profit or loss. The criteria to qualify encompass the nature of activities, the nature of investors and their interests in the entity, and the entity’s management of its investments. The FASB is expected to issue similar proposals in the near future but with one key difference.



IASB Meetings


The summary combines the outcomes of the individual sessions from the IASB’s meetings held on 20–22 and 28 July 2011.


  • IASB Meetings [PDF: 600KB]


Should IFRS 9's effective date be pushed back?


ED/2011/3 Mandatory Effective Date of IFRS 9 proposes to push back the effective date of IFRS 9 Financial Instruments to annual periods beginning on or after 1 January 2015.



Other KPMG publications


First Impressions: Employee Benefits (July 2011)


This edition of First Impressions considers the requirements of the amended IAS 19. The text of this publication is referenced to the amended IAS 19 (2011) (IAS 19R), the current IAS 19, IFRIC 14 and selected other current IFRS literature, standards and interpretations in issue at 30 June 2011. References in the left-hand margin identify the relevant paragraphs of the standards and interpretations.


  • First Impressions: employee benefits (July 2011) [PDF: 450KB]


First Impressions: Fair Value Measurement (June 2011)


This edition of First Impressions considers the requirements of IFRS 13 Fair Value Measurement issued in May 2011. This publication includes a discussion of the key elements of the fair value measurement requirements and highlights the various application issues of the standard.


  • First Impressions: fair value measurement (June 2011) [PDF: 700KB]


First Impressions: Consolidated Financial Statements - IFRS 10 (May 2011)


Our First Impressions discusses the new approach for determining which investees should be consolidated. The new

consolidation standard (IFRS 10) aims to develop a single consolidation model applicable to all investees, alleviating past concerns that existing consolidation and disclosure standards failed to adequately portray the risks to which investors in certain entities were exposed.


The standard explicitly introduces concepts of agent vs principal and de facto control; the former being particularly important for industries such as funds, asset management and real estate.



First Impressions: Joint arrangements - IFRS 11 (May 2011)


Our First Impressions explains how the new joint arrangements standard (IFRS 11) works. We discuss its implications for business and highlight areas of ambiguity. Examples show its effects in practice. The new standard removes entities’ ability to choose between the equity method and proportionate consolidation.


In terms of the industries facing a potential change in accounting policy as a result of the new requirements, our surveys reveal that proportionate consolidation is widely used across all industries. We expect that many, although not all, companies currently using proportionate consolidation will be required to change to equity accounting.



IFRS Leases Newsletter - Issue 7, July 2011


This issue highlights the re-exposure of leasing proposals, the application of a single "receivable and residual" model, leases on investment property and variable lease payments.



New publication: Illustrative financial statements: Banks (June 2011)


The KPMG International Standards Group has posted Illustrative financial statements: Banks (June 2011) to the ISG Portal and the external website. The purpose of this publication is to assist preparers in preparing, and auditors in auditing, financial statements for a bank or similar financial institution in accordance with International Financial Reporting Standards (IFRSs).





NZ Accounting Standards Board Communiqué


The New Zealand Accounting Standards Board (NZASB) held its second meeting on 17 August 2011 at which it discussed:

  • multi-standards Framework, including differential reporting
  • approvals of new and amended standards on employee benefits and presentation of other comprehensive income.



Losing the excess baggage: recommendations on reducing disclosures in financial reports


In response to increased criticism by some of increasing detail in financial reports, and suggestions that excessive details impairs the usefulness of financial reports, the International Accounting Standards Board (IASB) asked the Institute of Chartered Accountants of Scotland (ICAS) and the Chartered Accountants Australia and New Zealand to undertake a joint project to review the volume of disclosure requirements in International Financial Reporting Standards (IFRS). 


Since October last year the Group has undertaken detailed review of financial reporting standards and recommends enhancing the use of materiality in financial reporting disclosures, and deleting many disclosure requirements that do not contain material information.


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