Reporting UpdatesIFRSs issued but not yet effective
This publication lists newly effective standards and standards issued but not yet effective for interim and annual periods ending 31 December 2011 and will assist you in complying with the disclosure requirements of NZ IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, paragraph 30.
In the Headlines
In the Headlines: Issue 2011/36 – November 2011 IASB Meetings
This In the Headlines issue discusses the outcomes of the individual sessions from the IASB’s meetings held in November 2011. In some sessions the IASB held joint discussions with the FASB.
- The IASB decided that IFRS 9 (2009) and IFRS 9 (2010) should be amended to require application for annual periods beginning on or after 1 January 2015, rather than 1 January 2013.
- The IASB also decided to consider making limited improvements to IFRS 9 and, in particular, to consider the interaction with the insurance contracts project. This decision enables the IASB to consider the FASB’s classification and measurement model.
- With respect to making an amendment to IFRS 8, specifically excluding non-executive directors as part of CODM, the IASB decided that no further clarification of the requirements is necessary.
Other KPMG PublicationsIFRS for Investment Funds: Segment reporting
This publication addresses practical application issues that investment funds may encounter when applying IFRS 8 Segment Reporting. It discusses the key requirements and includes interpretative guidance and illustrative examples. IFRS 8 introduced segmental disclosure requirements based on the information that management uses to make decisions about operating matters. The application of the standard by investment funds may require a significant amount of judgement.
Comment letter in respect of Agenda Consultation 2011
This letter expresses the views of KPMG International and its member firms in respect of the IASB’s Agenda Consultation 2011.
We welcome this consultation and support the dual objectives of both maintaining and developing IFRS, but have suggested some changes to the five strategic areas that the IASB has proposed. We comment on:
- the importance of reasonable estimates of timelines;
- the need for an initial assessment of any proposed project;
- other lessons learned to consider when setting the next IASB agenda;
- whether the IASB’s structure is appropriate for the agenda that it should be pursuing;
- the shape of the agenda; and
- our assessment of priorities for standard-level projects.
IASB and FASB issue common offsetting disclosure requirements
On 16 December 2011 the International Accounting Standards Board (IASB) issued final amendments to two IFRSs as a result of its offsetting project:
1. Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)
The amendments to IFRS 7 Financial Instruments: Disclosures require new disclosures about the effect or potential effect of netting arrangements on an entity’s financial position. These disclosures will also provide comparable information between financial statements prepared in accordance with IFRSs and those prepared in accordance with US GAAP.
2. Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32).
The amendments to IAS 32 Financial Instruments: Presentation clarify certain aspects of that standard in order to address inconsistencies in current practice when applying the offsetting requirements.
(Note that as of 19 December 2011 these amendments had not yet been adopted as New Zealand equivalents by the NZASB).
NZ Accounting Standards Board Communiqué
The NZASB is currently seeking comments on the following documents:
- IPSASB Exposure Draft Recommended Practice Guideline Reporting on the Long-Term Sustainability of a Public Sector Entity's Finances
- IPSASB Consultation Paper Reporting Service Performance Information
- NZASB Exposure Draft 2011-1 Omnibus Amendments.