New Zealand

Details

  • Service: Audit, Advisory, Accounting Advisory Services
  • Type: Business and industry issue
  • Date: 20/01/2012

Contact us

  Simon Lee

Simon Lee

Technical Director, Accounting Advisory Services

+64 4 816 4678

Accounting Advisory Services

We can help with complex financial reporting regulations, optimise relevant reporting processes and incorporate new requirements.

Reporting news - 12RN01 

Welcome to this week's Reporting News, a regular summary of publications on reporting matters to keep you informed about financial reporting developments.

Reporting Updates

No reporting updates this week.

In the headlines

In the Headlines: Issue 2011/39 – Mandatory effective date of IFRS 9 deferred to 1 January 2015

 

The IASB has deferred the mandatory effective date of the existing chapters of IFRS 9 Financial Instruments (2009) and IFRS 9 (2010) to annual periods beginning on or after 1 January 2015. The deadline was previously 1 January 2013.

 

Highlights

  • IAS 39 replacement package not yet finalised.
  • No requirement to restate comparatives.
  • Additional disclosures on the initial impact of transition.
  • Early adoption of either standard permitted.

 

 

In the Headlines: Issue 2011/40 – Offsetting financial assets and financial liabilities

  

The International Accounting Standards Board and the US Financial Accounting Standards Board have decided to maintain their current offsetting models, and have issued common disclosure requirements. The IASB has built these new requirements into IFRS 7.

 

In addition, the IASB has published Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32). These Amendments clarify the offsetting criteria in IAS 32 to address inconsistencies in their application.
 

 

In the Headlines: Issue 2011/41 – Clarifying IFRS 10 transition

 

The IASB has issued ED/2011/7 Transition Guidance – Proposed amendments to IFRS 10. The ED clarifies the transition to IFRS 10, which is effective for annual periods beginning on or after 1 January 2013. The comment period for the proposals ends on 21 March 2012.

 

Highlights

  • The consolidation test would be performed at the beginning of the annual period in which IFRS 10 is applied for the first time (1 January 2013 for an entity with a 31 December year end).
  • If there is no change in the control conclusion, then comparatives would not require adjustment.
  • If there is a change in the control conclusion, then comparatives would generally be restated unless control of the investee had been lost in the comparative period(s).



    Other KPMG Publications

    Illustrative financial statements: Investment funds  

     

    The purpose of this publication is to assist in preparing the financial statements of an investment fund in accordance with IFRSs. It illustrates one possible format of financial statements for fund-specific entities based on a fictitious tax-exempt open-ended single-fund investment company. This publication focuses on disclosure requirements that are specific to funds’ activities.

     

     

    New World for Insurance – Preparation and readiness industry survey


    The New World for Insurance: Preparation and readiness for accounting change – an industry survey, part of KPMG ISG’s New World for Insurance series of publications, discusses and highlights important issues for insurers related to the forthcoming financial reporting changes that will affect the sector.

     

    A number of insurers from around the world were surveyed to see where future accounting changes (IASB and FASB draft comprehensive insurance contracts standards or Phase II) stand as a priority to global insurers. While timetables for the

     

    Phase II standards have been delayed, this survey highlights that these proposed changes are still top of mind for many global insurers. Some of the results of the survey were surprising, and are presented in a short summary.

     

     

    IFRS – Insurance Newsletter – Issue 22, December 2011

     

    This edition of IFRS – Insurance Newsletter highlights the results of recent IASB and FASB discussions on the joint insurance contracts project. In addition it provides the current status of the project and anticipated timeline for completion.

     

    During December, the Boards discussed a number of topics including:

    • participating contracts (including a discussion on the results of the separate FASB meeting held on 30 November on this topic)
    • discounting the liability for incurred claims under the premium allocation approach
    • unit of account for various aspects of measurement including the definition of a portfolio
    • onerous contracts.

     

    In addition, the IASB continued their discussions on whether to make targeted improvements to IFRS 9 Financial Instruments.

     

     

    IFRS – Leases Newsletter – Issue 9, December 2011

     

    The IASB and FASB (the Boards) discussed the leases project in December, almost a year to the day after the comment period on the 2010 ED closed. The proposals have changed significantly in that year.

     

    Highlights

    • Leases of investment property are out of scope of the lessor accounting model.
    • Income from investment property leases is generally recognised on a straight-line basis.
    • Requirement for lessors to assess whether profit is reasonably assured has been dropped.
    • Boards to discuss lessee expense recognition in the New Year.


     

    IFRS – Banking Newsletter – Issue 4, January 2012

     

    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.

     

    In this  issue, we:

    • look at the increased risk surrounding sovereign debt, together with associated impairment, disclosure and other measurement considerations
    • consider the regulatory proposals around central counterparties for over-the-counter derivatives transactions in the context of the related accounting complexities
    • review and provide insights on the IASB’s fourth quarter activities, including the release of the final offsetting amendments and the decision to reopen parts of IFRS 9
    • outline the continuing dialogue on incorporating IFRS into the US financial reporting system.

     

     

    Comment letter on the Integrated Reporting: Communicating Value in the 21st Century

     

    This letter expresses the views of KPMG International and its member firms in respect of the International Integrated Reporting Committee’s document Towards Integrated Reporting: Communicating Value in the 21st Century.

     

    Other publications

    NZ Accounting Standards Board Communiqué

     

    The New Zealand Accounting Standards Board held its 5th meeting in Wellington on 15 December 2011.The principle focus of the meeting was the further development of draft Standards for Tier 1 and Tier 2 public benefit entities.

     

     

    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 Addressing Conflicts of Interest and the NZAuASB is issuing it for comment in New Zealand.

     

    The ED proposes to provide additional guidance concerning conflicts of interest, and to make revisions to provide more comprehensive guidance in identifying, evaluating, and managing conflicts of interest.

     

     
    Share this

    Sign up now

    Subscribe to selected content and receive email alerts when new content is available for viewing on this site.

     

    Already a member? Login

     

    Not a member? Register