Eye on Reporting

EY monthly financial reporting newsletter

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Welcome to the September edition of Eye on Reporting.

We are pleased to announce that our latest EY Global publication on the new leases standard, Applying IFRS – A closer look at the new leases standard, has been released. The publication discusses how IFRS 16 is applied and is intended to help companies consider the effects of adopting the new leases standard.

We have also released our updated IFRS Core Tools publications. The IFRS Core Tools are designed as practical building blocks to provide a comprehensive basis for our clients to keep up with the changing landscape of IFRS. The updates comprise new illustrative financial statements of Good Insurance (International) Limited, Good Investment Fund Limited (Equity) and Good Investment Fund Limited (Liability). Please note that these publications are based on ‘pure’ IFRS, and do not cover New Zealand additional disclosure requirements.

This month we also highlight:

  • Our publication on an overview of the status of the European Union (EU) endorsement process for IFRS standards and amendments issued by the International Accounting Standards Board (IASB) as at 30 June 2016
  • The International Public Sector Accounting Standard Board's (IPSASB) Consultation Paper on Public Sector Specific Financial Instruments
  • The New Zealand Accounting Standards Board’s (NZASB) Exposure Draft on 2016 Omnibus Amendments to PBE Standards

Kind regards
Kimberley Crook and Graeme Bennett
Financial Accounting Advisory Services

Eye on Reporting headlines:


What’s new from EY?

EY - Applying IFRS – A closer look at the new leases standard

Applying IFRS – A closer look at the new leases standard

The International Accounting Standards Board (IASB) issued IFRS 16 Leases earlier this year, which requires lessees to recognise assets and liabilities for most leases. This could have broad implications for entities’ finances and operations and may require new processes and controls, or adjustments to existing systems to identify and account for leases. This publication takes a closer look at applying IFRS 16 and is intended to help companies consider the effects of adopting the new standard. We encourage preparers and users of financial statements to read this publication carefully and consider the potential effects of the new standard.
EY - Good Insurance (International) Limited 2015

Good Insurance (International) Limited 2015

This edition contains illustrative financial statements of Good Insurance (International) Limited and subsidiaries for the annual period ending 31 December 2015. It is prepared in accordance with IFRS issued as at 31 August 2015.

Please note that this publication is based on ‘pure’ IFRS, and does not cover New Zealand additional disclosure requirements.
EY - Good Investment Fund Limited (Equity) 2015

Good Investment Fund Limited (Equity) 2015 and Good Investment Fund Limited (Liability) 2015

The illustrative financial statements for Good Investment Fund Limited (Equity) 2015 and Good Investment Fund Limited (Liability) 2015 are for the annual period ending 31 December 2015. They are prepared in accordance with IFRS issued as at 31 August 2015.

Please note that these publications are based on ‘pure’ IFRS, and do not cover New Zealand additional disclosure requirements.
EY - IFRS adopted by the European Union

IFRS adopted by the European Union

This publication provides an overview of the status of the European Union (EU) endorsement process for IFRS standards and amendments issued by the IASB as at 30 June 2016, with an EU effective date after 1 January 2015. Information related to EU endorsement is as of 30 June 2016.

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IFRS news and other updates: for-profit entities

IPSASB issued Consultation Paper on Public Sector Specific Financial Instruments

The International Public Sector Accounting Standard Board (IPSASB) issued the Consultation Paper (CP) on Public Sector Specific Financial Instruments. The CP considers the issues related to public sector specific financial instruments and approaches to accounting for them. The CP covers three types of financial instruments:

  • Currency in circulation
  • International Monetary Fund Quota Subscription and Special Drawing Rights
  • Monetary Gold

The CP can be found here. The IPSASB’s publication At a Glance: Consultation Paper Summary Public Sector Specific Financial Instruments (July 2016) is available here.

The CP is relevant for Tier 1 and Tier 2 public sector public benefit entities (PBEs) only. Comments are due to the New Zealand Accounting Standards board (NZASB) by 2 December 2016 and to the IPSASB by 31 December 2016.

NZASB issued Exposure Draft on 2016 Omnibus Amendments to PBE Standards

The NZASB published for public comment an Exposure Draft (ED) ED NZASB 2016-8 2016 Omnibus Amendments to PBE Standards to amend existing PBE Standards. The ED contains the following proposals:

  • amendments arising from Chapters 1-4 of the Public Benefit Entities' Conceptual Framework
  • amendments arising from Improvements to IPSASs 2015 (Part II)
  • amendments arising from IASB amendments and
  • editorial corrections

Most of the proposals in the ED are relevant for Tier 1 and Tier 2 PBEs. Comments are due to the NZASB by 11 November 2016. The Invitation to Comment and the ED can be found here.

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Events and webcasts

EY - IFRS 4 and IFRS 9 update for non-life insurers

IFRS 4 and IFRS 9 update for non-life insurers

IFRS 4 and IFRS 9 update for life insurers

The IASB has finalised their discussions on IFRS 4 and the option for insurers to defer the implementation of IFRS 9 – with revised standards expected to be issued in the next few months.

Join us for an update of the latest developments and a view on the main expected impacts on insurers in the life and non-life industries. We will also suggest some preparation activities that insurers may wish to undertake during 2016.

During this session, we will discuss:

  • Timelines and latest developments
  • Main impacts on insurers
  • Implementation considerations and what to do now.
EY - Developments in IFRS 9 impairment for banks - Replay

Developments in IFRS 9 impairment for banks - Replay

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments. The standard is effective for annual periods beginning on or after 1 January 2018, with early application permitted.

The new impairment requirements will have a major impact on many entities, especially banks. In our October 2014 webcast, IFRS 9: impairment for banks and similar entities, we discussed the key principles of the expected credit loss model and highlighted the impact and implications of the new expected credit loss requirements for banks and similar entities.

In this webcast, our panel will discuss developments in interpreting and implementing the IFRS 9 impairment requirements and what this means for banks and similar entities with significant credit risk exposures. This includes:

  • Issues discussed by the IASB’s Transition Resource Group for Impairment of Financial Instruments (ITG)
  • The Basel Committee guidance on credit risk and accounting for expected credit losses
  • Significant interpretation issues and practical implementation issues in practice
  • Impact and implications for banks and similar entities.

Note: Click here to access the October 2014 webcast in which we discussed the key principles of the IFRS 9 impairment model.

You may also access IFRS publications and similar resources by clicking here.

Archived recordings of all our previous webcasts are available here.

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On the horizon

Below are recent proposals that are currently open for comment to the NZASB, IASB and/or 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 2016-7 PBE IFRS 9 Financial Instruments

30 September 2016

 

 

ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed Amendments to IFRS 3 and IFRS 11)

30 September 2016

31 October 2016

 

ED NZASB 2016-8 2016 Omnibus Amendments to PBE Standards

11 November 2016

 

 

IPSASB Consultation Paper Public Sector Specific Financial Instruments

2 December 2016

 

31 December 2016

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Contacts

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

Kimberley Crook – Partner, Auckland +64 274 899 535
Graeme Bennett – Partner, Auckland +64 274 899 943
David Pacey – Executive Director, Auckland +64 212 425 716
Lara Truman – Executive Director, Wellington +64 274 899 896
Alex Knyazev – Senior Manager, Auckland +64 218 53 152

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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.

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