New Accounting Framework (NZ)

Agenda

1. Share our interpretation 2.   Reckon APS Standard Sheets 3.   Open discussion & feedback anything? 

Our Interpretation

1.

New Accounting Framework

Effective 1 April 2014

Aim : Reduce the costs of preparing accounts for small businesses. Estimate 90% companies won’t need to comply.

There are some entities previously that didn’t need to comply, that are now required to comply ie charitable trusts.

Compliance with GAAP (GPFR)

Up to 31 March 2014 - 2 options for complying with GAAP:• NZ IFRS or• Old GAAP (with the option to apply differential reporting)

From 01 April 2014 - XRB created multi-tier reporting which splits entities between:

• Public Benefit entities (PBEs)- Public Sector or Not-For-Profits (NFPs)

• For-Profit

Who has to comply?

Special Purpose reporting

• ‘Companies’ not applying GAAP, are required to meet the IRDs minimum reporting requirements. (may extend to other entity types)

• NZICA have published an accounting framework for For-Profit entities not applying GAAP

(optional) (satisfies compliance with IRD requirements)

• Users : Bank, internal, IRD

Reckon APS Standard Sheets

2.

Framework for 31 March 2015

Framework for 31 March 2016 & Beyond

Impact on XPA ledgers, sheets and your practice

• We will continue to use 1 Master template

• 2015 Reckon APS Standard Sheets • XPA V10 pre-requisite

Internal training• XPA changes• Financial reporting fields/coding• Xcede sheet enhancements

Open discussion & feedback

3.

Questions for you-         How many firms will use Standard Sheets for IFRS clients?

- Have you thought forward to 2016 when the only option for compliance to GAAP is NZ IFRS reporting (for profit entities)?

- Are you comfortable with our approach around IFRS?                - 2015 will only support NZ IFRS Differential Reporting (as per frozen 2012 standards)

                - 2016 planning to support NZ IFRS RDR (for profit entities).

Questions for you

- Do you require NZ IFRS for For-Profit entities other than Companies for 2016 ? (the only option for GAAP)

• Reckon APS Standard Sheets• What are your requirements for entities that fall outside

of a reporting framework?• What additional management reporting would you

value?

For more information, visit www.reckon.com

THANK YOU