Eye on Reporting | Issue 1/2025

Illustrative Financial Statements for year ended 31 December 2024 – Quality Holdings (New Zealand) Limited and illustrative climate related disclosures under AASB S2

We have published the 2024 edition of Quality Holdings (New Zealand) Limited, providing illustrative consolidated financial statements for the year ended 31 December 2024 (also applicable to 30 June 2025 year-ends). These financial statements assist for-profit entities in preparing financial statements in accordance with NZ IFRS and NZ IFRS Reduced Disclosure Regime. While the illustrative financial statements do not specifically address the NZ Climate Standards disclosure requirements, they include guidance and commentary on the potential impacts of climate change on financial reports.

Although developed for the Australian  Sustainability Reporting Standards (ASRS), namely AASB S2 Climate-Related Disclosures, this publication provides illustrative climate related disclosures. The publication may provide useful insights for New Zealand entities preparing climate-related disclosures under the New Zealand Climate Standards.

What do operating segments reveal about impairment?

Changes in operating segments are closely tied to impairment testing. Awareness of this correlation is especially important where goodwill is allocated to a cash-generating unit that is impacted by a change in operating segments. This publication offers practical guidance on identifying operational changes that may affect operating segments and could lead to impairment testing. Access the publication here.

New Accounting Standards and Interpretations – for profit and public benefit entities

This for-profit publication provides an overview of the upcoming changes in standards and interpretations (pronouncements) to be applied for 31 March 2025 year ends and those mandatory in future periods. It also summarises the latest IFRIC agenda decisions which should be considered for 31 March 2025 year ends.

The Public Benefit Entity equivalent publication can be found here.

Hot Topics in Reporting

We will host a “Hot Topics in Reporting” webcast in June. This session is designed to keep you updated on the latest developments in financial reporting. If you would like to attend, please sign up here. We will look to cover operating segments and other recent updates.

How to account for nature-dependent electricity contracts?

Nature-dependent electricity contracts are exposed to supply variability and may result in the recognition of a financial instrument. Conversely, an ‘own-use exception’ exists in circumstances where an entity is a ‘net purchaser’ of electricity. This publication explains the impact of recent amendments on the scope, measurement, hedge accounting and disclosure requirements for these contracts, effective 1 January 2026. Learn more here.