For-profit amendments to standards and new IFRIC

For-profit Entities

We have issued two amending standards and an IFRIC Interpretation that apply to for-profit entities.

Annual Improvements to NZ IFRSs 2014–2016 Cycle

This amending standard is based on amendments issued by the International Accounting Standards Board (IASB) as part of its Annual Improvements process. This amending standard contains amendments to:

  • NZ IFRS 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards;
  • NZ IFRS 12 Disclosure of Interests in Other Entities; and
  • NZ IAS 28 Investments in Associates and Joint Ventures.

The amendments to NZ IFRS 1 are to remove short-term exemptions. The amendments to NZ IFRS 12 and NZ IAS 28 are clarifying in nature. 

The amendments have a range of effective dates, with the earliest being for annual periods beginning on or after 1 January 2017.

Transfers of Investment Property (Amendments to NZ IAS 40)

This amending standard clarifies the requirements as to when there is a change in the use of a property, supported by evidence, which causes a transfer into, or out of, investment property.

The amending standard is effective for annual periods beginning on or after 1 January 2018 with early application permitted.

NZ IFRIC 22 Foreign Currency Transactions and Advance Consideration

This Interpretation clarifies which exchange rate to use in reporting foreign currency transactions when a payment is made or received in advance.

NZ IFRIC 22 is effective for annual periods beginning on or after 1 January 2018 with early application permitted.