New Zealand

Details

  • Service: Audit, Advisory, Accounting Advisory Services
  • Type: Business and industry issue
  • Date: 19/10/2011

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Reporting News - 11RN06 

Reporting News aims to keep you informed about financial reporting developments

Reporting News is a regular summary of publications on reporting matters from KPMG and 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. There are no reporting updates this week

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

 

Issue 2011/32 – September 2011 IASB meetings

 

The summary combines the outcomes of the individual sessions from the IASB’s meetings held on 19–21 September 2011. In some sessions the IASB held joint discussions with the FASB.

 


    Issue 2011/31 - Integrated reporting: A step towards Better Business Reporting

     

    The International Integrated Reporting Committee (IIRC) recently published a discussion paper Towards Integrated Reporting – Communicating Value in the 21st Century. This edition of In the Headlines summarises the IIRC’s vision for an enhanced, integrated, future-oriented approach to reporting and their initial proposals for developing an International Integrated Reporting Framework.

     

     

    Other KPMG publications:

     

    IFRS – Banking Newsletter – Issue 3, October 2011

     

    The Bank Statement is KPMG’s IFRS Banking Newsletter produced by the International Standards Group and IFRS banking specialists around the KPMG network. It is a quarterly publication that provides updates on IFRS developments directly impacting banks, considers accounting issues affecting the sector, and discusses potential accounting implications of regulatory developments.

     

    Topics covered in this issue include the following.

     

    • The consequences for banks of recently issued disclosure requirements, including those related to structured entities and transfers of financial assets.
    • The interaction between new accounting standards and Basel III capital and liquidity regulations.
    • The exception from consolidation for investment funds contained in the newly issued exposure draft is not expected to carry over to most bank parent entities.
    • Developments in the ongoing financial instruments accounting projects related to offsetting, impairment and hedge accounting.

     

    • IFRS - Banking Newsletter - Issue 3


    IFRS – Insurance Newsletter – Issue 19, October 2011


    The October 2011, Issue 19 of KPMG ISG’s IFRS – Insurance Newsletter, highlights the results of the September IASB and FASB discussions related to the joint insurance contracts project including:

     

    • The IASB’s further refinement of the objective for the risk adjustment to be more consistent with IFRS 13
    • The IASB’s decision not to limit the range of available techniques for the risk adjustment and to retain the confidence level equivalent disclosure for the risk adjustment
    • The FASB’s decision that the liability for incurred claims should be measured as the present value of unbiased expected cash flows excluding any margin under the premium allocation approach
    • Further guidance from the FASB on the subsequent accounting for the single margin.

     

    The Newsletter also gives the current status of the project and anticipated timeline for completion.

     

     

    Other

     

    NZ Accounting Standards Board Communiqué

     

    The New Zealand Accounting Standards Board met in Wellington on 28 September 2011. This was the first NZASB meeting open to the public. The main matters considered at the meeting related to the new Accounting Standards Framework and the differential reporting arrangements.

     

    • NZASB Communiqué 2011-7: 4 October 2011

     

    XRB Accounting Standards Framework Seminars

     

    On 14 September 2011 the External Reporting Board released three documents containing proposals for a new Accounting Standards Framework.

     

    The XRB will be holding a series of Seminars in November to outline the proposals. The seminars are free and are open to anyone interested in attending. Numbers for each seminar are limited and registrations will be accepted on a first come basis.

     

     

    Companies Act Changes

     

    In October 2011 the Government introduced legislation to tighten requirements around company directors and company registration.  The Bill will require all New Zealand companies to have either one New Zealand-resident director or a local agent. The Registrar of Companies will also get expanded powers.

     

     

    Financial Markets Authority Updates

     

    From 1 October 2011, the new Securities Trustee and Statutory Supervisors Act 2011 came into force. The new rules will be overseen by the Financial Markets Authority and were developed as part of the Government’s regulatory reform agenda for the financial markets and to address concerns about the quality of supervision provided by some trustees and supervisors.

     

     

    The Financial Markets Authority has welcomed the introduction into Parliament of the Financial Markets Conduct Bill. The bill replaces a number of pieces of legislation, including the Securities Act 1978, the Securities Markets Act, the Unit Trusts Act, the Superannuation Schemes Act, and the non-tax parts of the KiwiSaver Act.

     

    The Bill will also significantly extend the scope of activities regulated by FMA, for example, to include fund managers, independent trustees of superannuation schemes, derivatives dealers, and peer-to-peer lenders. The FMA is encouraging all financial markets participants and stakeholders to review the Bill and to take the opportunity to make submissions at the Select Committee stage.

     

     

    Office of the Auditor-General: Performance Audit Report - The Treasury: Implementing and managing the Crown Retail Deposit Guarantee Scheme


    This report by the Auditor-General details the performance audit carried out by the OAG in respect of the Treasury’s implementation and management of the Crown Retail Deposit Guarantee Scheme.

     

    In October 2008, at the peak of the global financial crisis, the Government implemented its Retail Deposit Guarantee Scheme (the Scheme) to avoid a flight of funds from New Zealand financial institutions. The Scheme offered a Crown guarantee over the money that people deposited or invested with financial institutions. The Auditor-General considered a performance audit to be important because the Scheme was so significant to our economy and because it was designed and implemented with such speed.

     

    Overall, the Auditor-General found that the Scheme achieved its goal. No banks in New Zealand failed and the economy was stabilised. However, there have been costs.

     

    • Implementing and managing the Crown Retail Deposit Guarantee Scheme

     

     
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