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Eye on Reporting

April 2012

Welcome to the April edition of Eye on Reporting.

The revised revenue proposals have been open for comment for the past 6 months and are expected to affect many industries. In this month’s Industry in focus section we highlight our industry specific series of Applying IFRS publications. These publications have been developed to assist you in understanding how the proposals might be applied to revenue contracts in specific industries.

As the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (US FASB) continue to work together on their many joint projects, keeping up to date with the standard-setting activities can be challenging. Our March 2012 edition of Joint Project Watch gives you a snapshot of the key developments from an IFRS perspective, together with our observations on the potential implications for entities.

We also bring you our quarterly publication of New Accounting Standards and Interpretations for entities with 31 March 2012 year ends. This publication is designed to assist preparers in identifying accounting standards and interpretations which have become effective for 31 March 2012 year ends, and those new accounting standards and interpretations which were issued but not yet effective for 31 March 2012 year ends.

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

David Pacey

Executive Director, Auckland

+64 274 899 049

Lara Truman

Executive Director, Wellington

+64 274 899 896

Ravi Kumar

Senior Manager, Auckland

+64 212 214 717

Jude Doliente

Manager, Auckland

+64 212 417 481

David Bassett

Senior Accountant, Auckland

+64 274 899 883

Kind regards
Kimberley Crook
Financial Accounting Advisory Services


Hot topics

  • New Accounting Standards and Interpretations
    NZ IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires disclosure when an initial application of a standard has an effect on the current period, or any prior period, and disclosure of the possible impact of new and revised standards and interpretations that have been issued but are not yet effective.

    This includes pronouncements issued by the International Accounting Standards Board (IASB) and International Financial Reporting Standards Interpretations Committee (IFRSIC) for entities that are required to make a statement of compliance with IFRS.

    The attached publication indicates standards and interpretations which have become effective, and those on issue which are not yet effective, for 31 March 2012 year ends.

  • More work needed on revenue recognition
    The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (US FASB) remain committed to putting leases on the balance sheet. However, they continue to struggle with how to recognise related lease revenue and expense. This is likely to delay a new exposure draft

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IFRS news and updates

  • Joint Project Watch - March 2012 
    The standard-setting activities of the IASB and the US Financial Accounting Standards Board (US FASB) on their joint projects continue to move forward. The Boards have issued final standards or exposure drafts on several projects and continue to re-deliberate others. In our March edition of Joint Project Watch we provide a snapshot of key developments from an IFRS perspective, along with our observations about the potential implications for companies.
  • IFRS in Brazil - Spotlight on Brazil's IFRS adoption
    Read our interview with Idesio Coelho, Professional Practice Director, EY, South America, and Paul Sutcliffe, EY’s IFRS Leader, South America in the March 2012 edition of IFRS Outlook, and learn more about Brazil’s adoption of IFRS in 2010.

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Industry in focus

Life Sciences

  • Revised revenue recognition proposal  
    Applying IFRS in life sciences analyses the impact of the proposal for life sciences entities, with application examples and a comparison to the existing standard.

Oilfield Services

  • Revised revenue recognition proposal  
    Applying IFRS in oilfield services highlights significant changes in practice for oilfield services entities could result from the revenue recognition proposal, including more detailed performance evaluations, different progress measurements and an increase in financial statement disclosures.

Oil & gas

  • Revised revenue recognition project  
    Applying IFRS in oil & gas: while the proposal should not fundamentally change revenue recognition for many transactions, we provide impact analysis, application examples and a comparison to existing standards.

Power & utilities

  • Revised revenue recognition proposal 
    Applying IFRS in power and utilities: The proposed model is not expected to have a significant impact within the power and utilities industry, but may impact contract modifications and take-or-pay arrangements.

Mining & metals

  • Revised revenue recognition proposal 
    Applying IFRS in mining & metals analyses the implications of the proposal, explaining where the revenue recognition practices may change for certain arrangements.

Insurance

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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
IPSASB Consultation Paper Reporting Service Performance Information 
CLOSED
-
15 April 2012
ED - IPSASB ED 47 - Financial Statement Discussion and Analysis 
25 June 2012
 
31 July 2012
ED - IPSASB Consultation Paper Presentation 
30 April 2012
 
31 May 2012

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Events and Webcasts

If you missed any of the recent global webcasts you can now watch them via the webcast archive. 

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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

David Pacey

Executive Director, Auckland

+64 274 899 049

Lara Truman

Executive Director, Wellington

+64 274 899 896

Ravi Kumar

Senior Manager, Auckland

+64 212 214 717

Jude Doliente

Manager, Auckland

+64 212 417 481

David Bassett

Senior Accountant, 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.

Contact us

Kimberley Crook
+64 9 300 7094

Graeme Bennett
+64 9 300 8191

Lara Truman
+64 274 899 896

David Pacey
+64 212 425 716

Asia Pacific Financial Accounting Advisory Services contacts.

Applying IFRS in New Zealand

The time for companies to ensure their financial reporting systems comply with NZ equivalents of International Reporting Standards is now. EY provides you with the tools and resources to help you with the task ahead.

EY  

 

Eye on Reporting

Eye on Reporting is our monthly update on financial reporting developments.

Please click here to read the current issue.

US GAAP and IFRS convergence

IFRS implementation continues worldwide

Visit ey.com/AU/ifrs to keep up with IFRS developments.