Eye on Reporting - February 2014

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Happy New Year and welcome to the first edition of Eye on Reporting for 2014.

This month we highlight the new edition of IASB Projects: A pocketbook guide, providing a summary of the key features of active International Accounting Standards Board (IASB) projects and their likely impact. We also bring you our latest issue of Applying IFRS, which discusses practical issues with applying IFRS 10 Consolidated Financial Statements.

In November 2013 the new hedge accounting requirements were issued by the IASB. Our IFRS Developments summarises the changes and how to prepare for their implementation.

If you would like any further information on any of these topics or the topics below, please get in touch with our Financial Accounting Advisory Services Team.

    To find out more about the services we offer in this area please contact EY's Financial Accounting Advisory Services Team

     
     

    Kimberley Crook

    Partner, Auckland

    +64 9 300 7094

    Lara Truman

    Executive Director, Wellington

    +64 274 899 896

    David Pacey

    Executive Director, Auckland

    +64 212 425 716

    Ravi Kumar

    Senior Manager, Auckland

    +64 212 214 717

    David Bassett

    Manager, Auckland

    +64 274 899 883

    Kind regards
    Kimberley Crook
    Financial Accounting Advisory Services


    Hot topics

    • IASB Projects: A pocketbook guide
      EY’s pocketbook guide summarises the key features of the active projects of the International Accounting Standards Board (IASB) as at 31 December 2013. It also considers potential implications of the proposed standards and our views on certain projects.

    • Applying IFRS: Challenges in adopting and applying IFRS 10 
      This edition of Applying IFRS is an update to our 2011 publication on the practical implementation challenges of applying IFRS 10 Consolidated Financial Statements. This publication describes the requirements of IFRS 10, including the amendment to include an exception to consolidation for investment entities. It explores the application issues we observed as entities adopted IFRS 10 in 2013 and describes the relevant disclosure requirements of IFRS 12 Disclosure of Interests in Other Entities.

    • The IASB issues IFRS 9 (2013) – hedge accounting is now complete 
      In November 2013, the IASB issued a new version of IFRS 9 Financial Instruments (2013) that includes: (a) the new hedge accounting requirements; (b) a ‘fast-track’ to applying the requirements of IFRS 9 for the presentation of own credit risk-related fair value gains and losses; and (c) removes the 1 January 2015 mandatory effective date for IFRS 9.
      Our publication summarises what you need to know and the implications of these changes.
      In New Zealand, the New Zealand Accounting Standards Board (NZASB) has incorporated IFRS 9 (2013) into NZ IFRS by issuing:
      • NZ IFRS 9 (2013) Financial Instruments (Hedge Accounting and amendments to NZ IFRS 9, NZ IFRS 7 and NZ IAS 39) – applicable to Tier 1 and Tier 2 for-profit entities; and
      • NZ IFRS 9 (2013) (Diff Rep) Financial Instruments (Hedge Accounting and amendments to NZ IFRS 9 (Diff Rep), NZ IFRS 7(Diff Rep) and NZ IAS 39 (Diff Rep)) – optional for Tier 3 for-profit entities.
      For these New Zealand for-profit entities, the Standards are effective for periods beginning on or after 1 January 2017, with early adoption permitted. This effective date has been included in the New Zealand standards because of legislative requirements.

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    Other IFRS news and other updates

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    Industry in focus

    Asset management

    • Good Investment Fund Limited (Equity)
      Good Investment Fund Limited (Equity) contains an illustrative set of financial statements of Good Investment Fund Limited (the Fund) for the year ended 31 December 2013.

      Note that this set of illustrative financial statements relates to ‘pure’ IFRS and therefore does not include additional New Zealand material.

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    On the horizon

    Below are recent Exposure Drafts which are currently open for comment to the New Zealand Accounting Standards Board (NZASB), IASB and/or International Public Sector Accounting Standards Board (IPSASB). Please refer to the current exposure draft section on the XRB website for more details (www.xrb.govt.nz).
      

     

    Standard/Exposure Draft
    Comments due to NZASB by
    Comments due to IASB by
    Comments due to IPSASB by
    ED NZASB 2013-6 Proposed Disclosure Concessions for Tier 2 For-profit Entities: IASB ED/2013/6 Leases
    31 March 2014
     
     
    EDs for Enhancements for PBE Standards for NFP PBEs (Tier 1 and Tier 2)
    2 May 2014
       
    Exposure Draft ED NZASB 2014-1 Proposed Disclosure Concessions for Tier 2 For-profit Entities: Hedge Accounting
    2 May 2014
       
    Exposure Draft ED/2013/11 Annual Improvements to IFRSs 2012–2014 Cycle
    7 March 2014
    13 March 2014  
    IPSASB Exposure Draft 53 First-Time Adoption of Accrual Basis International Public Sector Accounting Standards 17 January 2014   28 February 2014
    IPSASB Exposure Drafts 48-52 on Accounting for Interests in Other Entities

    17 January 2014

      28 February 2014
    IPSASB Exposure Draft 54 Recommended Practice Guideline on Reporting Service Performance Information

    24 April 2014

     

    31 May 2014

     

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    Events and Webcasts

    • Click here to access a summary of all upcoming webcasts. If you missed any of the recent global webcasts you can now watch them here.

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    Contacts

     For more information on any of the points raised in this newsletter, please contact a member of EY’s Financial Accounting Advisory Services Team.

    To find out more about the services we offer in this area please contact EY's Financial Accounting Advisory Services Team
     

    Kimberley Crook

    Partner, Auckland

    +64 9 300 7094

    Lara Truman

    Executive Director, Wellington

    +64 274 899 896

    David Pacey

    Executive Director, Auckland

    +64 212 425 716

    Ravi Kumar

    Senior Manager, Auckland

    +64 212 214 717

    David Bassett

    Manager, Auckland

    +64 274 899 883

     

      


    The information contained in this newsletter does not constitute advice and should not be relied upon as such.  Professional advice should be sought prior to action being taken on any of the information.