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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)
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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…