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Eye on Reporting - August 2013

Welcome to the August edition of Eye on Reporting.

This month we bring you our latest edition of IASB Projects: A pocketbook guide. This publication provides an overall summary of the key features of the International Accounting Standards Board’s (IASB’s) active projects and developments as well as their likely impacts.

We also highlight the IASB’s proposed changes to the accounting requirements for biological assets that meet the definition of bearer plants (e.g., fruit trees). Bearer plants are to be treated as property, plant and equipment in the scope of IAS 16 Property, Plant and Equipment. However, agricultural produce growing on bearer plants (e.g., fruit growing on a tree) would remain in the scope of IAS 41 Agriculture.

In addition, we provide an update on the continuing changes the IASB are making to hedge accounting, the status of the revenue project and highlight the deferral of the effective date of IFRS 9 – a decision made by the IASB at their July meeting.

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

+64 212 425 716

Ravi Kumar

Senior Manager, Auckland

+64 212 214 717

Jude Doliente

Senior Manager, Auckland

+64 212 417 481

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 IASB as at 30 June 2013. It also considers potential implications of the proposed standards and EY's views on certain projects.

 

  • IFRS Developments: Changes proposed to the requirements for bearer plants
    The IASB has proposed changes to the accounting requirements for biological assets that meet the definition of bearer plants (e.g., fruit trees). Bearer plants are to be treated as property, plant and equipment in the scope of IAS 16 Property, Plant and Equipment. However, agricultural produce growing on bearer plants (e.g., fruit growing on a tree) would remain in the scope of IAS 41 Agriculture. Government grants related to bearer plants would be accounted for in accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, instead of IAS 41.

    Our publication provides further detail around the proposed changes.

    Comments to the IASB are requested by 28 October 2013.
     

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Other IFRS news and updates

  • IFRS Developments: IASB to defer effective date of IFRS 9 and accelerate own credit requirements
    At the July 2013 IASB meeting, the Board tentatively decided to defer the mandatory effective date of IFRS 9 and leave this open pending finalisation of the impairment, classification and measurement requirements. A decision was also made to accelerate the application of the ‘own credit’ requirements of IFRS 9 by making them available separately from the other requirements of IFRS 9.

    This publication summarises the considerations and key decisions made.

  • IFRS Developments: Boards near completion of the revenue recognition standard
    The IASB and US Financial Accounting Standards Board (the Boards) moved a step closer to finalising their new revenue recognition standard at their July 2013 joint meeting, clarifying aspects of variable consideration and collectability requirements. The Boards have indicated that they expect to issue a final standard in the third quarter of 2013.

    This edition summarises what you need to know about the Boards’ recent tentative decisions on revenue.

  • IFRS Developments: Amendments to IAS 39: continuing hedge accounting after novation
    In June 2013, the IASB amended IAS 39 Financial Instruments: Recognition and Measurement, seeking to provide relief in restricted circumstances from discontinuing hedge accounting. This applies when novation of a derivative designated as a hedging instrument meets certain criteria. Novation indicates that parties to a contract agree to replace their original counterparty with a new one.

    The effective date is 1 January 2014 with early application permitted.

    Our publication explains all you need to know about the amendments.

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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
NZASB Request for comments on Proposed Disclosure Concessions for Tier 2 and Tier 3 For-profit Entities 
30 August 2013
 
 
NZASB Request for comments on Amendments to NZ IFRS 4 Insurance Contracts

25 Septemeber 2013

 
 
Exposure Draft ED/2013/5 Regulatory Deferral Accounts
CLOSED
4 September 2013
 
Exposure Draft ED/2013/6 Leases CLOSED 13 September 2013
 
Exposure Draft ED/2013/7 Insurance Contracts 25 September 2013 25 October 2013  
Exposure Draft ED/2013/8 Agriculture: Bearer Plants 27 September 2013 28 October 2013  
Discussion Paper DP/2013/1 A Review of the Conceptual Framework for Financial Reporting 22 November 2013 14 January 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

David Pacey

Executive Director, Auckland

+64 212 425 716

Ravi Kumar

Senior Manager, Auckland

+64 212 214 717

Jude Doliente

Senior Manager, Auckland

+64 212 417 481

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.

 

 

 

 

 

 

 

 

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.

EY  

 

Eye on Reporting

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

Please click here to read the current issue.

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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.