The New Zealand International Financial Reporting Standards [NZIFRS] How they might affect your...
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Transcript of The New Zealand International Financial Reporting Standards [NZIFRS] How they might affect your...
The New Zealand The New Zealand International Financial Reporting International Financial Reporting
Standards Standards [NZIFRS][NZIFRS]
How they might affect your tertiary organisation…
Jeff LongDirector FinanceUniversity of Canterbury
30 years in the making…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 How this affects you NOWNOW!!
• 2007 is really 2005
• Comparative reporting of previous year required
• 2005 adjustments can go against retained earnings
A stable platform…A stable platform…
• 36 standards
• 12 interpretation statements
Who is involved?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…For TEIs this will mean changes…
NZ IAS: 17 Leases
• Leases on equipment
• Leases on land and buildings
NZ IAS 18: Revenue RecognitionNZ 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 BenefitsNZ IAS 19: Employee Benefits
• Long service leave
• Study / Research leave
• Sick leave
NZ IAS 24: Related Parties NZ IAS 24: Related Parties DisclosureDisclosure
• 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 ImpairmentNZ IAS 36: Asset Impairment
• Impairment
• Net selling price, or
• Value in use: future cash flows
• Cash Generating Units (CGU)
A Positive!A Positive!Depreciated replacement cost (DRC)
A worry!A worry!Impairment may relate to …
• asset obsolescence or
• an asset wearing out or
• asset damage or
• changes in use
NZ IAS 40: Investment PropertyNZ IAS 40: Investment Property
• Exceptions for PBEs• But what about…• Changes to ‘fair value’
IFRSIFRSa good thing?
Fortunately NZ GAAP is well developed!
But…