Welcome to EY Eye on Reporting Newsletter, providing you with the latest insights in financial reporting.
The current issue includes information on the following:
- The XRB has issued three exposure drafts detailing its proposed climate-related disclosure framework. EY has produced a short publication – New Zealand climate-related disclosure framework, outlining the key proposals for climate reporting entities.
- EY has published Quality City Council (June 2022), the Public Benefit Entity (PBE) model financial statements, which illustrate disclosure requirements in accordance with PBE Standards and PBE Standards Reduced Disclosure Regime. This version includes additional disclosures on climate risk and the COVID-19 pandemic impacts.
- EY has also released its new accounting standards and interpretations publications issued as of 30 June 2022.
New Zealand climate-related disclosure framework
This new publication provides entities with an overview of the Exposure Drafts of Aotearoa New Zealand Climate Standards and also outlines the key disclosure requirements for climate reporting entities.
Accounting for Climate Change
The focus on measurement and disclosure of climate-related matters is intensifying. This may require significant effort and judgment. The updated publication helps entities to assess and report on the effects of climate change in their financial statements. The publication includes consideration of the impacts of climate change on impairment testing, provisions, fair value measurement and financial instruments among other things.
New Accounting Standards and Interpretations
This publication provides an overview of the upcoming changes in standards and interpretations (pronouncements) to be applied for for-profit entities the first time for 30 June 2022 year ends and those mandatory in future periods. It also summarises the latest IFRIC agenda decisions which should be considered for 30 June 2022 year ends.
The Public Benefit Entity equivalent publication can be found here.
The FMA has issued the following publications:
- Auditor Regulation and Oversight Plan 2022 – 2025. The plan sets out areas of focus for audits of FMC reporting entities.
- Approach to oversight of financial statements. This publication notes the FMA’s areas of focus including significant judgements and estimates, impairment of non-financial assets, valuation, expected credit losses and going concern
- NZX obligations annual review. This publication considers how well the NZX is meeting is licensed market operator obligations
IASB Update June 2022
A summary of matters discussed during the June 2022 IASB meeting is now available. A podcast for the July IASB meeting is also available.
A podcast for matters discussed by IFRIC during the second quarter of 2022 is available. Further, the IFRIC Update June 2022 is also available.
- NZASB ED 2022-9 Disclosure of fees paid to audit firms
- Climate-related Disclosures Final Consultation
Latest and updated publications:
- Illustrative financial statements - Good Group (International) Limited - December 2022
- Applying IFRS Financial Instruments with Characteristics of Equity (FICE)
- IASB’s Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12
- IFRIC’s tentative agenda decision on multi-currency groups of insurance contracts
- Accounting for rent concessions (Updated June 2022)
- IFRS Update of standards and interpretations in issue at 30 June 2022