No reporting updates this issue
In the Headlines
Issue 2012/10 – Increasing the Value of Auditor Reporting
This In the Headlines summarises the recently issued Invitation to Comment: Improving the Auditor’s Report, issued on 22 June 2012. This was issued as a follow-on from the May 2011 consultation paper Enhancing the value of Auditor Reporting: Exploring Options for Change.
The key proposals include:
- The introduction of explicit statements on going concern
- The introduction of auditor commentary
- A requirement to disclose the name of the engagement partner
- Expanded disclosure of the responsibilities of management and those charged with governance, and of the auditor
- A statement that the auditor has read the other information included in a document containing the audited financial statements and identified no material inconsistencies.
Issue 2012/11 – Adopting the consolidation suite of standards
This In the Headlines: Transition Guidance – Amendments to IFRS 10, IFRS 11 and IFRS 12 considers the amendments simplifying the process of adopting IFRSs 10 and 11, and the relief provided from the disclosures in respect of unconsolidated structured entities.
Other KPMG Publications
IFRS – Banking Newsletter – Issue 6, July 2012
This edition of IFRS – Banking Newsletter 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:
- A discussion paper is to be issued in H2 of 2012 as the first due process step for the macro hedging project. This is an opportunity for banks to interact with the IASB to make sure the new macro hedging model is transparent and operational.
- Using bail-in debt instruments as a tool in the formation of recovery and resolution plans has become increasingly popular with bank supervisors. We consider some of the accounting implications, with a focus on classification and measurement.
- A new fair value through other comprehensive income category is to be added to the IFRS 9 classification and measurement model and the general framework of the ‘three-bucket’ expected credit loss measurement model is now complete.
Integrated Reporting: Performance insight through better business reporting
The second issue of the Integrated Reporting series Integrated Reporting: Performance insight through better business reporting has been released.
This issue helps explain the case for, and practical implications, of integrated reporting. In it, you'll learn how Integrated Reporting principles can be used to help explain an organisation's corporate responsibility approach, challenges and opportunities more effectively to its shareholders – and ultimately produce a better corporate report that will be of interest to all its stakeholders.
External Reporting Board Communiqué 2012/12 – 28 June 2012
The XRB and the NZASB have issued for comment a set of forty one Exposure Drafts (“EDs”) for Tier 1 and Tier 2 Public Sector Public Benefit Entities (PS PBEs). The PS PBE package comprises:
- ED XRB A1 (FP Entities + PS PBEs Update) and its invitation to comment, this is an update from the first version issued in April as part of the “For-profit Package”.
- EDs for PBE Standards (Tier 1 and 2), these will be known as the “PBE Standards”. Each standard also includes the RDR provisions for Tier 2 entities.
The package does not include Simple Format Reporting Standards for PS PBEs (Tier 3 and 4).
Submissions are due by Friday 14 December 2012.
NZ Accounting Standards Board Communiqué 2012/9 – 29 June 2012
The New Zealand Accounting Standards Board has issued Annual Improvements to NZ IFRSs 2009 – 2011 cycle. This applies to for-profit reporting entities applying NZ IFRS for all annual reporting periods beginning on or after 1 January 2013.
NZ Accounting Standards Board Communiqué 2012/10 – 10 July 2012
The New Zealand Accounting Standards Board is seeking comments on the following documents:
1. IPSASB Consultation Paper – Public Sector Combinations
This paper sets out IPSASB's preliminary views on possible accounting treatment for different types of public sector combinations including: Acquisitions not under common control, Acquisitions under common control, and Amalgamations. Comments are due to the NZASB by 1 October 2012 and to the IPSASB by 31 October 2012.
2. IPSASB Work Program 2013 – 2014
The IPSASB is seeking feedback on its work programme during 2013-2014. The input received will help the IPSASB develop a short-term plan to carry it through to 2014.
Comments are due to the NZASB by 15 October 2012 and to the IPSASB by 31 October 2012.
3. IASB Request for Information Comprehensive Review of the IFRS for SMEs
The IASB has issued Request for Information Review of the IFRS for SMEs. Although the IFRS for SMEs is not applied in New Zealand, the NZASB is seeking comment from constituents interested in reporting by both for-profit entities and PBEs as the IASB’s decisions in the IFRS for SMEs will potentially impact on the Accounting Standards Framework.
Comments are due to the NZASB by 12 October 2012 and to the IASB by 30 November 2012.
NZ Auditing and Assurance Standards Board Communiqué 2012/13 – 3 July 2012
The New Zealand Auditing and Assurance Standards Board have issued exposure draft ED 2012-9 of the proposed Standard on Assurance Engagements, ISAE (NZ) 3410 Assurance Engagements on Greenhouse Gas Statements.
The proposed standard will conform with the international assurance standard issued by the International Auditing and Assurance Standards Board in June 2012 and will apply to all assurance providers, not only to accountants. Comments on the ED are due to the NZAuASB by 1 October 2012.
NZ Auditing and Assurance Standards Board Communiqué 2012/14 – 4 July 2012
The New Zealand Auditing and Assurance Standards Board held its most recent meeting in Auckland on 27 June 2012. The main matters considered at the meeting were:
- The Australian Auditing and Assurance Standards Board’s (AUASB) feedback on the strategy for achieving greater convergence with international standards and the harmonisation of assurance requirements between New Zealand and Australia.
- Consideration of current differences in the auditing assurance standards applying in both New Zealand and Australia.
- Approval of ISAE (NZ) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus, the joint AUASB/NZAuASB publication Applying the Auditing Standarsds in Audits of Smaller Entities and IAPN (NZ) 1000, Special Considerations in Auditing Financial Instruments.
- Approval of the exposure draft ISAE (NZ) 3410, Assurance on a Greenhouse Gas Statement.
- The NZAuASB’s response to the release of the international consultation paper looking at ways to improve the auditor’s report.
- Proposed amendments to the international ethical standards for dealing with suspected illegal acts.
- NZAuASB Communiqué 14: 4 July 2012