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Eye on Reporting - July 2012

July 2012

Welcome to the July edition of Eye on Reporting.

On 28 June 2012, the External Reporting Board and its sub-board, the New Zealand Accounting Standards Board, issued for comment a set of forty-one exposure drafts that would operationalise the new accounting standards framework for large and medium-sized public sector public benefit entities (PBEs). The proposed accounting standards are based on International Public Sector Accounting Standards (IPSAS) and have been modified as appropriate for New Zealand circumstances. In our publication Changing tack - A new set of accounting standards for public benefit entities we highlight the key differences between the proposed PBE standards and current NZ IFRS and the next steps PBEs should be considering.

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 June 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 30 June 2012 year ends. This publication is designed to assist preparers in identifying accounting standards and interpretations which have become effective for 30 June 2012 year ends, and those new accounting standards and interpretations which were issued but not yet effective for 30 June 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, whose details you will find at the bottom of this newsletter.

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

  • Changing tack - A new set of accounting standards for public benefit entities  
    In late June 2012, the External Reporting Board and its sub-board, the New Zealand Accounting Standards Board, issued for comment a set of forty-one exposure drafts that operationalise the new accounting standards framework for large and medium-sized public sector public benefit entities (PBEs).

    The External Reporting Board is seeking comments on the exposure drafts by 14 December 2012.

    In our latest publication, Changing tack - A new set of accounting standards for public benefit entities (pdf, 703.1kb)  we highlight the key differences between the proposed PBE standards and current NZ IFRS. Our publication also outlines the next steps for PBEs and how EY can assist your organisation with preparing for the move to the new standards. 

  • 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 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 30 June 2012 year ends.

  • Joint Project Watch - June 2012
    The standard-setting activities of the IASB and the US FASB continue to move forward. The Boards are expected to soon begin re-deliberations of their second exposure draft on revenue recognition, and continue to re-deliberate other projects. 

    Our June 2012 edition of Joint Project Watch is designed to give you a snapshot of key developments from an IFRS perspective, together with our observations on the potential implications for companies.         

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IFRS news and updates

  • Investment entities – the plot thickens
    Our IFRS Developments (Issue 34) publication describes what you need to know about the IASB and FASB’s tentative decisions on the proposals in the Investment Entities Exposure Draft.

  • Financial instruments: classification and measurement
    Our IFRS Developments (Issue 33) publication highlights the IASB and FASB’s tentative decisions and their impact on the classification and measurement model for financial instruments in the fair value through other comprehensive income category.

  • Circling back to straight line lease but with a twist
    Our IFRS Developments (Issue 32) publication describes what you need to know about the IASB’s recent decisions around expense recognition pattern and related income statement presentation for some leases.

  • Talking SMEs
    Talking SMEs considers topical issues on the IFRS for small and medium entities (SMEs). The IASB issued a new standard, IFRS for SMEs, in July 2009, with the objective of simplifying the financial reporting requirements for SMEs. While many believe that the standard has largely achieved its stated objective, SMEs still face technical issues in some areas.

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Industry in focus

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
 Package 1: For-Profit Accounting Standards 
3 August 2012
 
 
 Package 2: Public Sector PBE Accounting Standards 
14 December 2012
 
 
 Exposure Draft ED/2012/1 Annual Improvements to IFRSs 2010-2012 Cycle 
6 August 2012
5 September 2012 
 
 Draft IFRIC Interpretation DI/2012/1 Levies Charged by Public Authorities on Entities that Operate in a Specific Market 
13 August 2012
5 September 2012
 
Draft IFRIC Interpretation DI/2012/2 Put Options Written on Non-controlling Interests 
14 August 2012
1 October 2012
 
  IASB Request for Information Comprehensive Review of the IFRS for SMEs 
12 October 2012
 
30 November 2012 
ED - IPSASB ED 47 - Financial Statement Discussion and Analysis 
25 June 2012
 
31 July 2012 
 IPSASB Consultation Paper - Public Sector Combinations 
1 October 2012
 
31 October 2012
 Consultation on IPSASB Work Programme 2012-2014 
15 October 2012
 
31 October 2012

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Events and Webcasts

  • The lessons learnt from year end reporting

    In this webcast, a panel of EY professionals reflected on the challenges for 2011 year-end reporting, including the approach to consolidating companies, identifying impairments and valuing financial assets. The panel also identified key accounting issues that arose due to the economic environment, and discussed trends in financial reporting, including: the levels of acquisitions and disposals; disclosures of judgmental areas; and the impact of future accounting standards such as IFRS 11 Joint Arrangements and the proposed Leases standard.

    The webcast is aimed at helping CFOs and controllers identify and address the potential issues and pitfalls in the upcoming 2012 reporting cycle and to plan for future financial periods.

    If you missed this webcast, an archived version will be available here soon.

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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.

Stay up-to-date with the shifting world of IFRS with EY's Eye on Reporting

Local IFRS resources

Please see our Local IFRS site for extensive international resources, thought leadership and web based learning modules.