No reporting updates this week.
In the headlines
Issue 2011/34 – Proposed first-time adoption relief from retrospective fair value measurement of government loans
In response to constituent concerns, the IASB has proposed an exception to the retrospective fair value measurement of government loans with below-market rates of interest. ED/2011/5 Government Loans – Proposed amendments to IFRS 1 was issued on 20 October 2011, with comments due by 5 January 2012.
Issue 2011/33 - Changes in accounting for production stripping costs likely
In response to diversity in the accounting for production stripping costs incurred in surface mining activity, the IASB has issued an Interpretation that introduces requirements related to capitalisation and recognition in profit or loss. In our experience, only a handful of mining companies will be able to conclude that their current accounting is completely in line with the Interpretation.
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine was issued on 19 October 2011 and will be applicable for years ending on or after 1 January 2013, with early adoption permitted.
Other KPMG Publications
First Impressions: Production stripping costs
This edition of First Impressions considers the requirements of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine issued on 19 October 2011. It includes a discussion of the key elements of the Interpretation and highlights various application issues for affected surface mining companies.
External Reporting Board Communiqué
The XRB Board held its third meeting on 19 October 2011. The main matters considered at the meeting included:
- NZASB and NZAuASB work plans
- IASB Agenda Consultation
- Integrated Reporting
- Stakeholder Engagement
- Underlying Earnings
- International Auditing Developments
NZ Auditing and Assurance Standards Board Communiqué
The International Ethics Standards Board for Accountants (IESBA) has issued for comment an Exposure Draft Proposed Changes to the Code of Ethics for Professional Accountants Related to Provisions Addressing a Breach of a Requirement of the Code, and the NZAuASB is issuing it for comment in New Zealand. The ED proposes changes to several paragraphs that address an “inadvertent violation” of a provision of the Code. Comments on the ED can be made to the NZAUASB by 8 December 2011 or directly to the IESBA by 23 January 2012.
Financial Markets Authority Update
The FMA has presented its Statement of Intent and Statement of Service Performance for 2011-2014 to the House of Representatives in accordance with sections 140 to 142 of the Crown Entities Act 2004.
FMA Update - 21 October 2011 - see FMA website