Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Increased Economic Uncertainty Highlights The Importance Of ‘going Concern’ Disclosures

Consultation documents issued for comment

The New Zealand Accounting Standards Board (NZASB), a sub-board of the External Reporting Board (XRB), is inviting organisations to have their say into how their going concern position is disclosed in financial reports in the wake of growing economic uncertainty.

The NZASB has recently issued two consultation documents, known as exposure drafts, proposing more specific disclosure requirements for businesses, public sector and not-for-profit organisations on their going concern basis for preparing financial statements. Financial reports are prepared assuming that an organisation will continue to operate for at least the next 12 months.

The NZASB Chair, Kimberley Crook, said, “the proposals build on existing requirements in accounting standards and are designed to help entities to provide relevant and transparent information, which investors and other users of financial statements are looking for during periods of increased economic uncertainty.”

The economic effects of COVID-19 are expected to have a significant impact on the going concern assessments of a large number of organisations in New Zealand, both now, and for some time in the future. Many will need to apply significant judgement and/or consider the impact of material uncertainties in assessing their organisation’s ability to continue as a going concern.

The consultation documents propose more specific disclosure requirements where management has determined that the going concern basis of financial statement preparation is appropriate, but is aware of events or conditions that may cast significant doubt on the organisation’s ability to continue as a going concern. In these situations, readers of financial statements need clear disclosure.

“Directors will need to consider whether the organisation they govern should apply the going concern assumption for financial reporting purposes, and clearly disclose any significant judgements and material uncertainties they considered in coming to this conclusion,” said Crook.

While the proposed effective date is annual periods ending on or after 30 September 2020, organisations currently preparing their annual financial statements may find it helpful to use the more specific going concern disclosure requirements.

The comment period for the two exposure drafts closes 24 July 2020. The drafts are available at:

Going Concern Disclosures (Proposed Amendments to FRS-44)

Going Concern Disclosures (Proposed Amendments to PBE IPSAS 1)

About the XRB

The External Reporting Board (XRB) is the Crown Entity responsible for financial reporting strategy and standard setting in New Zealand. Its focus is to establish accounting and assurance standards that engender confidence, assist in international competitiveness and enhance accountability. The XRB has two technical boards, the New Zealand Accounting Standards Board (NZASB) and the New Zealand Auditing and Assurance Standards Board (NZAuASB). For more information on the XRB, NZASB or NZAuASB visit www.xrb.govt.nz

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National's Great Leap Backwards

It isn’t surprising that at the height of its disarray, National should have looked for certainty and picked the least introspective candidate on offer. With Judith Collins, there is absolutely no risk that the leader will suddenly have an angst attack about whether they’re really up to the job. You would have to go all the way back to Robert Muldoon to find a National Party leader less prone to self-doubt, and more willing to use fear as a weapon to maintain discipline within the rank and file... More>>

 

Gordon Campbell: On The Todd Muller Resignation

Given the factions within National’s own caucus, anyone picked as the new leader of the National Party will struggle to unify their own troops, let alone to convince the electorate that National is a coherent government-in-waiting. Even all of that ... More>>

Green Party: Unveils Clean Energy Plan

The Green Party is today unveiling part one of its plan for a fossil-fuel free Aotearoa, including an immediate ban on new industrial coal boilers. To ensure a just transition away from fossil-fuels, the Green Party’s Clean Energy Plan will: Establish a Clean ... More>>

ALSO:

National Departures: Press Statement From Michelle Boag

Today I am announcing that I have resigned my membership of the NZ National Party. The last few days have underscored for me the unhealthy relationship I have developed with politics. For 47 years, I have devoted much of my professional and personal ... More>>

ALSO:

RACISM IS NO JOKE: Campaign Launched To Fight Racism Against Asian New Zealanders

Race Relations Commissioner Meng Foon has launched the ‘RACISM IS NO JOKE ’ campaign featuring well-known comedian, Filipino New Zealander James Roque. “Since COVID-19, we’ve seen an increase in racism against Chinese and other Asian New ... More>>


Isolation: Government And Air NZ Agree To Manage Incoming Bookings

Bookings for seats on Air New Zealand flights into New Zealand will be managed in the short term to ensure the Government is able to safely place New Zealanders arriving home into a managed isolation or quarantine facility, says Housing Minister Megan ... More>>

ALSO:

Government: New Investment Creates Over 2000 Jobs To Clean Up Waterways

A package of 23 projects across the country will clean up waterways and deliver over 2000 jobs Prime Minister Jacinda Ardern and Environment Minister David Parker announced today. The $162 million dollar package will see 22 water clean-up projects ... More>>

ALSO:

Eenrgy & Environment: Snail Like Progress On Government Vehicle Emissions Targets

First published in Energy and Environment on June 2, 2020. The latest data on the Government’s attempts to reduce the emissions of its transport fleet show no discernible progress. The Ministry of Business, Innovation and Employment’s data on reducing ... More>>

Conservation: New Protection For Dolphins

Extensive new protections are being put in place as part of an updated plan to look after New Zealand’s native Hector’s and Māui dolphins, announced Minister of Fisheries Stuart Nash and Minister of Conservation Eugenie Sage today. More>>

ALSO:

David Seymour: ACT Leader's Address To Election Campaign Launch - ASB Waterfront Theatre, 12 July 2020

Introduction Thank you very much. Elections in New Zealand – like everywhere - are a very special tradition, because they are driven by you. They’re an opportunity to change your future. If you think about it, the Government doesn’t do much. It ... More>>

Foreign Affairs: New Zealand To Review Relationship Settings With Hong Kong

Foreign Affairs Minister Winston Peters has announced that the New Zealand Government is reviewing the settings of its relationship with Hong Kong. “China’s decision to pass a new national security law for Hong Kong has fundamentally changed the environment ... More>>

ALSO:


Covid-19 Patient Info Leak: Hamish Walker - A Personal Statement And An Apology

I have spoken to National Party Leader Todd Muller and informed him that I passed to members of the media, by email, information containing Covid-19 patient details that was given to me by a source. I did this to expose the Government’s shortcomings ... More>>

ALSO:

Economy: Infrastructure Investment To Create Jobs, Kick-Start COVID Rebuild

A new package of infrastructure investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand. Finance Minister Grant Robertson and Infrastructure Minister ... More>>

ALSO:

Covid-19: Isolation System To Be Beefed Up After Stress

A range of improvements are already underway to address issues identified in the rapid review of the Managed Isolation and Quarantine system released today, Housing Minister Megan Woods said. The review was commissioned just over a week ago to identify ... More>>

ALSO:

Election 2020: Parties Get Into Gear

ACT has today announced its list for the 2020 General Election. “The calibre and experience of our candidates will impress voters of every persuasion. We have candidates from all walks of life. People who have built their homes, families and businesses ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels