NZASB Meeting Highlights 22 March 2017

Access the Board papers here

Here is an outline of the main matters considered.

PBE Standard Approved for Issue

The Board approved Impairment of Revalued Assets (Amendments to PBE IPSASs 21 and 26) to be finalised and issued.

We will advise by a separate communiqué when the amending standard is issued.

Service Performance Reporting

The Board discussed and provided feedback on a revised draft standard. The Board will continue its discussions at the next meeting and consider the next due process steps.

FRS-42 and PBE FRS 42 Prospective Financial Statements

The Board noted the FRS-42 and PBE FRS 42 practice issues identified through targeted outreach. 

One of the practice issues was whether FRS-42 and PBE FRS 42 apply to general purpose prospective information that is not specifically required by legislation to be presented in accordance with GAAP. The Board’s discussion focussed on this issue.

The Board plans to continue its discussion of FRS-42 and PBE FRS 42 practice issues at a future meeting.

Approved Budget (Proposed Amendments to PBE IPSAS 1)

The Board considered the comment letters on ED NZASB 2016-9 Approved Budget (Proposed Amendments to PBE IPSAS 1).

Following feedback from respondents, the Board agreed that public sector entities should be permitted to provide the comparison between prospective and actual information either on the face of the financial statements or as a separate statement.

Not-for-profit entities will be able to provide this information either on the face of the financial statements, in a separate statement or in the notes to the financial statements.

The Board will consider the revised standard for approval to issue at the next meeting.

PBE Policy Approach

The Board undertook its third annual review of the application of the XRB Policy Approach to Developing the Suite of PBE Standards (PBE Policy Approach) to pronouncements issued since 1 October 2013 by the International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board (IPSASB).

The Board also considered the application of the PBE Policy Approach to the following pronouncements: 

  • NZ IFRIC 22 Foreign Currency Transactions and Advance Consideration;
  • Transfers of Investment Property (Amendments to NZ IAS 40); and
  • Annual Improvements to NZ IFRSs 2014–2016 Cycle. 

In most cases the Board agreed not to amend PBE Standards until the IPSASB has considered whether to amend IPSASs.

In the case of the amendments to NZ IFRS 12 Disclosure of Interests in Other Entities (which formed part of the Annual Improvements to NZ IFRSs 2014–2016 Cycle) the Board agreed to propose equivalent amendments to PBE IPSAS 38 Disclosure of Interests in Other Entities.

The Board plans to include the proposed amendment in the next omnibus exposure draft for PBE Standards.


The Board discussed IPSAS 40 Public Sector Combinations and provided feedback on matters to consider in order to progress the development of the New Zealand exposure draft. One issue discussed was the approach to classifying a combination in IPSAS 40.

The Board agreed to retain the IPSAS 40 approach for classifying a combination as either an acquisition or an amalgamation. However, the Board suggested that, in the accompanying Invitation to Comment, constituents be invited to comment on whether they: 

  1. consider the IPSAS 40 classification approach is workable and provides for appropriate outcomes; and, if not
  2. would prefer the alternative approach considered by the NZASB in its submission on IPSASB ED 60 Public Sector Combinations.

The Board will consider further issues associated with the development of a New Zealand exposure draft at a future meeting.

Next NZASB Meeting

4 May 2017 in Wellington.