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Eye on Reporting

February 2013

Happy New Year and welcome to first edition of Eye on Reporting for 2013.

We are pleased to announce the release of our 2012/2013 New Zealand Financial Reporting Supplement. This supplement has been designed to be used with our range of illustrative financial reports, to assist you in preparing your annual reports for 31 December 2012 or 30 June 2013 year-ends.

In addition, we bring you our quarterly New Accounting Standards and Interpretations publications for entities with a 31 December 2012 balance date. We now have two separate publications, one for for-profit entities and another for public benefit entities, to address differences in the accounting standards framework applying to for-profit entities and public benefit entities.

Recently, a raft of exposure drafts were released by the International Accounting Standards Board (IASB) which aim to introduce practical guidance, particularly in respect of the new standards issued over the past few years on consolidation and joint arrangements.

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

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

  • New Zealand Financial Reporting Publication 2012/2013
    The 2012/2013 New Zealand Financial Reporting Supplement  has been designed to be used with our range of illustrative financial reports, to assist you in preparing your annual reports for 31 December 2012 or 30 June 2013 year ends.

    Amidst the sea of recent and proposed changes to the New Zealand Financial Reporting Framework, this supplement summarises the framework changes to assist you in understanding your current and future financial reporting obligations. This supplement further provides an update to New Zealand accounting standards, along with illustrative examples.


  • 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.

    The attached publications indicate standards and interpretations which have become effective, and those on issue which are not yet effective, for 31 December 2012 year ends.

    It is important to note that there are two separate publications, one for for-profit entities and one for public benefit entities (PBEs). Differences in the accounting standards framework applying to for-profit entities and PBEs make it important to select the applicable publication.


  • New Accounting Standards and Interpretations for For-profit Entities (pdf, 780.5kb)
  • New Accounting Standards and Interpretations for Public Benefit Entities (pdf, 729.9kb)

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IFRS news and updates

  • Joint Project Watch 
    The standard-setting activities of the International Accounting Standards Board and the US Financial Accounting Standards Board (the Boards) on their joint projects continue to move forward. The Boards are re-deliberating their second exposure draft (ED) on revenue recognition, and are preparing to issue a second ED on leases in mid 2013. Separate documents on financial instruments are expected to be issued in early 2013.
    Joint Project Watch is designed to give you a snapshot of key developments from an IFRS perspective, along with our observations about the potential implications for companies and references to other EY publications that provide more background and detail on the projects and proposals.


  • New accounting standard for lessees: Are we there yet? 
    The International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) have been working on their joint lease project for over six years, and recently completed their re-deliberations. While the Boards have taken numerous twists and turns on the road to completing the project, their intended destination has always remained the same — they are committed to putting leases on the balance sheet.

    In this edition of IFRS Practical Matters, we explore how the revised proposal would affect a lessee's finance, tax, IT systems and business processes.


  • Boards re-examine lessor accounting 
    In this edition of IFRS Practical Matters, we explore from a lessor’s perspective how the revised proposal would affect finance, tax, IT systems and business processes.


  • Boards progress further on revenue re-deliberations 
    At their joint meeting in December, the Boards made progress on the accounting for contract acquisition costs, constraining the cumulative amount of revenue recognised for licensed intellectual property, and allocating the transaction price.

    Issue 49 of IFRS Developments summarises these proposals.


  • IFRS Developments Issue 51: Boards address various application issues in the revenue proposal 
    In January 2013, the IASB and FASB considered application of their joint revenue recognition proposal. Tentative decisions were made regarding scope, repurchase agreements and transfers of certain non-financial assets that are not an output of an entity's ordinary activities. This edition of IFRS Developments looks at the issues discussed.


  • IFRS Developments Issue 50: Important changes to hedge accounting 
    In its January 2013 meeting, the IASB made some important changes and clarifications to the hedge accounting standard that are intended to address the main concern raised by constituents. However, the Board also decided to perform further limited outreach to understand concerns raised by constituents about the application of macro cash flow hedging strategies under IFRS 9. Consequently, this is likely to delay the publication of the final standard. This edition of IFRS Developments looks at the issues discussed.


  • IFRS Foundation publishes proposals to create an Accounting Standards Advisory Forum
    The IFRS Foundation has published for public comment proposals to create a new advisory group to the IASB, consisting of national accounting standard-setters and regional bodies with an interest in financial reporting.
     

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Industry in focus

Fund Management

  • Applying IFRS: IFRS 10 – Consolidation for fund managers 
    In this edition of Applying IFRS, we explore the impact of the IASB’s newly applicable standard, IFRS 10 Consolidated Financial Statements on fund managers and their funds, and consider some typical examples that might apply in the industry.

    Whereas previous standards on consolidation did not specifically address the unique relationship between fund managers and funds, IFRS 10 now contemplates them. It establishes a single control model that applies to all entities, replacing guidance previously contained in IAS 27 and SIC 12.
     

Real Estate

  • Good Real Estate Group (International) Limited 2012 
    Good Real Estate Group (International) Limited is an illustrative set of consolidated financial statements for Good Real Estate Group, a fictitious real estate company, for the year ended 31 December 2012.

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

Construction

  • Good Construction Group (International) Limited 2012 
    Good Construction Group (International) Limited is an illustrative set of consolidated financial statements for Good Construction Group, a fictitious construction company, for the year ended 31 December 2012.

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

Oil and Gas

  • Good Petroleum (International) Limited 2012 
    Good Petroleum (International) Limited is an illustrative set of consolidated financial statements for Good Petroleum Group, a fictitious group of oil and gas companies, for the year ended 31 December 2012.

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

Mining

  • Good Mining (International) Limited 2012 
    Good Mining (International) Limited is an illustrative set of consolidated financial statements for Good Mining Group, a fictitious group of mining companies, for the year ended 31 December 2012.

    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

Package 4: Public Sector PBE Simple Format Accounting Standards

28 March 2013
 
 

Package 3: NFP Simple Format Accounting Standards

28 June 2013
 
 

Exposure Draft ED/2012/2 Annual Improvements to IFRSs: 2011-2013 Cycle November 2012

CLOSED
18 February 2013
 

IASB Exposure Draft ED/2012/3 Equity Method: Share of Other Net Asset Changes

1 March 2013
22 March 2013
 

Exposure Draft ED/2012/5 Clarification of Acceptable Methods of Depreciation and Amortisation (Proposed amendments to IAS 16 and IAS 38)

28 February 2013
28 March 2013
 

Exposure Draft ED/2012/4 Financial Instruments: Classification and Measurement (Limited Amendments to IFRS 9)

8 March 2013 28 March 2013  

Exposure Draft ED/2012/6 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Proposed amendments to IFRS 10 and IAS 28)

28 March 2013 23 April 2013  

Exposure Draft ED/2012/7 Acquisition of an Interest in a Joint Operation (Proposed amendment to IFRS 11)

28 March 2013 23 April 2013  
Exposure Draft ED/2013/1 Recoverable Amount Disclosures for Non-Financial-Assets (Proposed Amendments to IAS 36) 1 March 2013 19 March 2013  

IPSASB Consultation Paper - IPSASs and Government Finance Statistics Reporting Guidelines

28 February 2013   31 March 2013

IPSASB Conceptual Framework Exposure Drafts

15 March 2013  
30 April 2013 

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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 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

Lara Truman

Executive Director, Wellington

+64 274 899 896

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.