Transcript The New Zealand International Financial Reporting

The New Zealand
International Financial Reporting
Standards
[NZIFRS]
How they might affect your tertiary
organisation…
Jeff Long
Director Finance
University of Canterbury
30 years in the making…
• Single set of international financial
reporting standards (IASB)
• NZ Accounting Standards Review
Board (ASRB)
• Applies from 1 January 2007
How this affects you NOW!
• 2007 is really 2005
• Comparative reporting of previous year
required
• 2005 adjustments can go against
retained earnings
A stable platform…
• 36 standards
• 12 interpretation statements
Who is involved?
• New Zealand Institute of Chartered Accountants
(NZICA)
• NZ Treasury
• Office of the Auditor General
• Deloitte
• KPMG
• Ernst Young
• PricewaterhouseCoopers
For TEIs this will mean changes…
NZ IAS: 17 Leases
• Leases on equipment
• Leases on land and buildings
NZ IAS 18: Revenue Recognition
• When is revenue counted as revenue?
• Recommend ‘stage of completion’ approach
rather than time of receipt
• Any “excess income ?”
NZ IAS 19: Employee Benefits
• Long service leave
• Study / Research leave
• Sick leave
NZ IAS 24: Related Parties
Disclosure
• Council, other elected members & the
Vice Chancellor
• Key management personnel
• “Authority and responsibility for
planning, directing, and controlling
activities, directly or indirectly, including
any Director.”
NZ IAS 36: Asset Impairment
• Impairment
• Net selling price, or
• Value in use: future cash flows
• Cash Generating Units (CGU)
A Positive!
Depreciated replacement cost (DRC)
A worry!
Impairment may relate to …
• asset obsolescence or
• an asset wearing out or
• asset damage or
• changes in use
NZ IAS 40: Investment Property
• Exceptions for PBEs
• But what about…
• Changes to ‘fair value’
IFRS
a good thing?
Fortunately NZ GAAP is well developed!
But…