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New Zealand harmonises standards with IFRSs, Australian Accounting Standards

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12 May 2011

The New Zealand Accounting Standards Review Board (ASRB) has approved the release of two standards which more closely harmonise New Zealand equivalents to International Financial Reporting Standards (NZ-IFRS) with both International Financial Reporting Standards (IFRSs) and Australian Accounting Standards.

New Zealand for-profit entities fully complying with NZ-IFRS have been able to make an explicit and unreserved statement of compliance with IFRSs. The effect of the new standards is to:

  • reintroduce options available under IFRSs into NZ-IFRS, e.g. the ability to use the cost method for investment property, or present the statement of cash flows using the indirect method
  • remove specific New Zealand requirements, e.g. the requirement to involve an independent valuer in the determination of the fair value of property, plant and equipment where the revaluation model is adopted
  • remove other New Zealand guidance from NZ-IFRS which is not also in IFRSs
  • delete a number of New Zealand specific disclosures, or move retained disclosures to a separate 'domestic' standard
  • ensure consistent terminology and requirements (particularly as to disclosures that are additional to those required by IFRSs) are adopted in New Zealand and Australia – the Australian Accounting Standards Board is expected to release equivalent amendments and standards in due course. The New Zealand and Australian regulators are also expected to consider 'mutual recognition' of financial reporting between the two countries

The revised requirements are required to be applied for annual reporting periods beginning on or after 1 July 2011. Click for:

 

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