Eye on Reporting
EY monthly financial reporting newsletter
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
Kimberley Crook and Graeme Bennett
Financial Accounting Advisory Services
Eye on Reporting headlines:
- What’s new from EY?
- IPSAS news and other updates: public benefit entities
- Events and webcasts
- On the horizon
What’s new from EY?
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.
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.
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 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.
Events and webcasts
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:
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:
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.
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
30 September 2016
30 September 2016
31 October 2016
11 November 2016
2 December 2016
31 December 2016
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|
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.