NZASB Meeting 13 September 2017

Event Date 13 September

Date And Time

Heritage Hotel
35 Hobson Street
Auckland 1001

Here is a summary of the main matters considered.

Amendments to XRB A1 (as applies to Tier 4)

The NZASB (the Board) approved 2017 Amendments to XRB A1 Application of the Accounting Standards Framework for tabling at the next XRB Board meeting for its approval to issue.

Principles of Disclosure

The Board approved for finalisation, subject to changes agreed at the meeting, the draft comment letter to the International Accounting Standards Board (IASB) on its Disclosure Initiative—Principles of Disclosure Discussion Paper.

Comments are due to the IASB by 2 October 2017.

Discussions with the Big 4 Managing Partners/Assurance Leaders

The Big 4 Managing Partners/Assurance Leaders attended a session of the meeting to share their views on the future of financial reporting. They discussed current topics of mutual interest with the Board including the role of financial statements, extended external reporting (EER1), challenges facing the profession and New Zealand’s multi-sector, multi-tier accounting standards framework.

Service Performance Reporting

The Board considered respondents’ comments on the limited scope review draft issued in May 2017 and provided direction for finalising the proposed standard.  At its next meeting, the Board will consider the proposed standard for approval to issue.

PBE IPSAS 40 PBE Combinations

The Board continued its review of potential amendments to IPSAS 40 Public Sector Combinations, with a view to continuing the development of an exposure draft of a PBE standard based on this standard.

The Board provided feedback on the proposed amendments, and noted that some require further work, before it continues its deliberations on what amendments are required.

It will consider a revised draft exposure draft at a future meeting.

Financial Reporting for Heritage in the Public Sector

The Board considered respondents’ comments on the Consultation Paper (CP) issued by the International Public Sector Accounting Standards Board (IPSASB), Financial Reporting for Heritage in the Public Sector. It reviewed the draft NZASB comment letter and agreed a number of amendments.

The Board agreed that the updated comment letter will be reviewed and approved by a Board sub-committee and sent to the IPSASB prior to the next meeting.

Accounting for Revenue and Non-Exchange Expenses

The Board considered the draft project and outreach plan for developing the NZASB’s comment letter in response to the Consultation Paper (CP) recently issued by the IPSASB, Accounting for Revenue and Non-Exchange Expenses.

The Board agreed that its comment letter should focus on the revenue and non-exchange expense recognition approaches proposed in the CP.

It has scheduled a separate meeting on 6 October 2017 to discuss the revenue recognition approaches proposed in the CP.

A webinar on the CP is scheduled for Thursday 28 September 2017, 1:00PM–2:00PM.

The webinar is free, but preregistration is required.

Forthcoming NZASB Meetings

6 October 2017 via video conference in Auckland and Wellington

1 November 2017 in Wellington

EER is the broad term used by the XRB to refer to alternative performance measures and to any reporting by entities that falls outside the primary financial statements and the notes. EER includes integrated reporting, sustainability reporting, management discussion and analysis (MD&A) etc.