New Public Benefit Entity Standards Issued
The NZASB has issued several new PBE Standards and an amending Standard which affect both public sector and not-for-profit entities.
PBE Interests in Other Entities
The following PBE Standards have been issued:
- PBE IPSAS 34 Separate Financial Statements;
- PBE IPSAS 35 Consolidated Financial Statements;
- PBE IPSAS 36 Investments in Associates and Joint Ventures;
- PBE IPSAS 37 Joint Arrangements; and
- PBE IPSAS 38 Disclosure of Interests in Other Entities.
These new standards are effective for annual periods beginning on or after 1 January 2019, with earlier application permitted. They supersede PBE IPSASs 6 to 8.
PBE IFRS 9 Financial Instruments
This Standard gives PBEs the opportunity to early adopt a PBE Standard that is based on NZ IFRS 9 Financial Instruments, from the point at which NZ IFRS 9 becomes effective.
Entities likely to consider early adoption of PBE IFRS 9 include those that are part of a mixed group (being a group that includes both PBEs and for-profit entities) or those that want to adopt the new hedge accounting requirements.
In considering whether to early adopt PBE IFRS 9, you will need to consider the impact of all the new requirements in PBE IFRS 9, including the new classification and impairment requirements.
PBE IPSAS 29 Financial Instruments: Recognition and Measurement will continue to be available for several years until an international project on financial instruments has been completed.
PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with earlier application permitted.
2016 Omnibus Amendments to PBE Standards
This amending Standard contains amendments to PBE Standards arising from Chapters 1 to 4 of the Public Benefit Entities’ Conceptual Framework, Improvements to IPSASs 2015 and IASB® narrow scope-amendments to IFRS® Standards. It also contains editorial corrections.
The amendments have a range of effective dates, with the earliest being for annual periods beginning on or after 1 January 2017.