Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

New IFRS amendment a welcome step forward

New IFRS amendment a welcome step forward

The International Accounting Standards Board (the international body that develops and approves International Financial Reporting Standards (IFRS) has approved an amendment that should make financial reporting more relevant to New Zealand conditions.

Since New Zealand adopted IFRS there have been criticisms the global standards do not cope well when companies revalue their assets to market value within our nil capital gains tax regime.

IFRS assumes that additional tax is payable on the uplift over cost and requires deferred tax liabilities to be recognised, which reduces net assets. In addition, over the past six months, a number of New Zealand companies and unit trusts have been required to report significant additional deferred tax liabilities and tax expenses under IFRS, as a result of the May budget changes to remove tax depreciation on buildings.
IFRS did not foresee or allow for such events and this led to commentators calling for changes to the standards and the possibility of moving away from global standards altogether.

The approved amendment will solve the problem for investment properties and provide welcome relief for those who generally were the most severely impacted by the budget changes.

PricewaterhouseCoopers Accounting Consulting Services partner, Michele Embling says "This is welcome news from the IASB, especially as we move into the next reporting cycle. It will result in financial information that is more meaningful and transparent and easier for investors to understand. It also demonstrates that the IASB is willing to listen, even to countries as small as New Zealand, and make changes to IFRS when there are good reasons for doing so."

The IASB is sympathetic to New Zealand's remaining concerns with the tax accounting standard and IASB staff are continuing to work with the New Zealand standard setter to explore other amendments that might solve the problem for remaining entities impacted by the budget changes.

While amendments still need to be adopted in New Zealand, Michele Embling says “the relevant standard setters are gearing up to approve the amendments over the Xmas break so that New Zealand entities can take advantage of the amendments as soon as possible.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>

ALSO:


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>

ALSO:

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>

ALSO:

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>