New Zealand follows Australia on investment entities
09 Nov 2012
The New Zealand Accounting Standards Board (NZASB) has tentatively decided to adopt the same strategy as the Australian Accounting Standards Board (AASB), and delay adoption of the IASB's investment entities amendments in the New Zealand context until an exposure draft can be issued proposing additional disclosures.
The NZASB met in Wellington on 7 November 2012 where the investment entity amendments were discussed. Consistent with the circumstances surrounding the AASB's tentative decision, the NZASB noted concerns about the loss of consolidated information that would result from the IFRS amendments in some circumstances.
In addition, the Board considered New Zealand External Reporting Board (XRB) strategies of adopting IFRS so that the financial statements of for-profit entities can assert compliance with IFRS, and the goal of trans-Tasman harmonisation with Australian accounting requirements.
Consistent with the AASB's approach, the proposed additional disclosures to be contained in a forthcoming NZ exposure draft are likely to comprise the three primary financial statements that would be produced under full consolidation.
The NZASB is expected to consider the exposure draft at its December 2012 meeting.
For more information, see NZASB Communique 2012 - 16 issued as a result of the NZASB's meeting (link to XRB website).