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Part 2.2 - Non-Departmental Output Expenses

Intended Impacts, Outcomes and Objectives

Intended Impacts, Outcomes and Objectives - Part 2.2 NonDepartmental Output Expenses - Commerce
Intended Impacts, Outcomes or Objectives of AppropriationsAppropriations
An effective and efficient takeovers market that maintains the respect and confidence of participants by providing a transparent process which ensures equal treatment of shareholders.Administration of the Takeovers Code*
Contributing to the creation of dynamic and trusted markets through the establishment of an accounting and assurance standards framework that:
  • engenders confidence in New Zealand financial reporting
  • assists entities to compete internationally, and
  • enhances entities' accountability to stakeholders.
Approval and Review of Financial Reporting Standards**
Accounting and Assurance Standards Setting**
ENFORCEMENT OUTCOMES the Commerce Commission influences
Markets are more competitive: By improving business compliance with competition law, businesses will undertake fewer anti-competitive mergers and trade practices, allowing markets to function more competitively.
AND
Consumers are better informed: By improving business compliance with consumer laws, businesses will represent goods and services more accurately, allowing consumers to make better informed purchasing decisions.
ENFORCEMENT IMPACTS the Commerce Commission seeks to have over time
  • Improved levels of business compliance with competition and consumer laws over time.
  • Improved levels of awareness and understanding of competition and consumer law, and the benefits of competition.
  • Business conduct that does not comply with competition and consumer law is detected and responded to appropriately.
Enforcement of General Market Regulation***
REGULATION OUTCOMES the Commerce Commission influences
Regulation is better targeted and more effective: By delivering targeted and effective regulation of goods and services in markets where there is little or no competition, consumers receive the goods and services that would have been available if the market was competitive.
REGULATION IMPACTS the Commission seeks to have over time
  • Regulatory decisions promote statutory objectives.
  • Businesses and consumers have an increased understanding of business and market performance.
  • Businesses are encouraged to act consistently with regulatory obligations.
  • Conduct by businesses that does not comply with regulatory obligations is detected and dealt with appropriately.
  • Businesses and consumers are aware of and understand regulatory regimes and the benefits of targeted regulation.
Enforcement of the Dairy Sector Regulation and Auditing of Milk Price Setting***
Regulation of Airport Services***
Regulation of Electricity Lines Business***
Regulation of Natural Gas Services***
Substantial reduction in risk of issuer audit failures.Regulation of Auditors**
New Zealanders are educated in financial matters; Government's retirement income policies remain effective; and the interests of residents of retirement villages are protected.Retirement Commissioner*****

For further information on the intended impacts, outcomes and objectives of the non-departmental output expense appropriations, please see the Statements of Intent for the Takeovers Panel (*), the External Reporting Board (**), the Commerce Commission (***), the Financial Markets Authority (****) and the Commission for Financial Literacy and Retirement Income (*****).

Accounting and Assurance Standards Setting (M13)

Scope of Appropriation

This appropriation is limited to the funding of financial reporting and auditing and assurance standards setting for the purposes of promoting the quality of financial reporting.

Expenses

Expenses - Accounting and Assurance Standards Setting (M13) - Commerce
2011/122012/13
Budgeted
$000		Estimated Actual
$000		Budget
$000
Total Appropriation4,4104,4104,410

Reasons for Change in Appropriation

No change for this appropriation.

Output Performance Measures and Standards

Output Performance Measures and Standards - Accounting and Assurance Standards Setting (M13) - Commerce
2011/122012/13
Performance MeasuresBudgeted
Standard		Estimated Actual
Standard		Budget
Standard

Developing Financial Reporting Strategy

Quantity

Finalised financial reporting framework1 issued1 issuedN/A
Finalised reporting tiers structure1 submitted for Ministerial approval1 submitted for Ministerial approvalN/A
Number of accounting standards frameworks being implementedN/AN/A1 for-profit
1 public sector
1 not-for-profit
Number of amendments to accounting standards Tier Strategy submitted to Minister for approvalN/AN/AAs required;
expected to be 1-2
Number of auditing and assurance standards frameworks being implementedN/AN/A1

Quality

Financial reporting framework is consistent with the Government's trans-Tasman outcome goals100% consistent100% consistentN/A
Tier structure is established in accordance with statutory requirements100% compliance100% complianceN/A
Accounting standards frameworks implemented in accordance with approved Tier StrategyN/AN/A100% compliance
Amendments to Tier Strategy consistent with statutory requirements and consistent with the Government's trans-Tasman outcome goalsN/AN/A100% consistent

Timeliness

Financial reporting framework31 December 201131 March 2012N/A
Tier structureWithin statutory deadline: expected to be 31 December 2011Within statutory deadline:
31 March 2012		N/A
Implementation of standards frameworksN/AN/AOn-going throughout the year
Amendments to Tier StrategyN/AN/AAs required

Preparing and Issuing Accounting Standards

Quantity

Number of International Accounting Standards Board standards and related documents issuedAll relevant: expected to be 5-106N/A
Number of other accounting standards and related documents issued15-256N/A
Number of exposure drafts and other due process documents issued relating to implementing the new accounting standards frameworksN/AN/A30-40
Number of standards and related documents issued relating to implementing the new accounting standards frameworksN/AN/A100-120
Number of exposure drafts and other due process documents relating to existing accounting standards suits issuedN/AN/A8-12 (depending on output of International Boards)
Number of standards and related documents relating to existing accounting standards suits issuedN/AN/A3-6 (depending on output of International Boards)
Number of projects undertaken on behalf of international accounting standard settersN/AN/A1

Quality

Statutory due process requirements followedAll standardsAll standardsAll standards
Standards reflect relevant international standards with departures only to improve qualityAll standardsAll standardsAll standards
Due process documents and Standards reflect approved Tier StrategyN/AN/AAll documents and standards
For-profit standards harmonised with Australia where appropriateN/AN/AAll standards

Timeliness

Standards issued in time for the commencement date to be no later than the international commencement dateAll standardsAll standardsN/A
Due process documents and standards relating to the new accounting standards framework issued in accordance with timeline established by the BoardN/AN/AAll documents and standards
Due process documents and Standards relating to existing accounting standards suites issued in time for the commencement date to be no later than the international commencement date (where relevant)N/AN/AAll documents and standards

Preparing and Issuing Audit and Assurance Standards

Quantity

Number of initial standards issued on establishment45-5041N/A
Number of new International Auditing and Assurance Standards Board standards and related documents issuedAll relevant: expected to be 4-80N/A
Number of other assurance standards and related documents issued2-53N/A
Number of exposure drafts and other due process documents relating to auditing and assurance standards issuedN/AN/AExpected to be 5-8 (depending on the output of International Boards)
Number of auditing and assurance standards and related documents issuedN/AN/AExpected to be 12-16 (depending on output of International Boards)

Quality

Statutory due process requirements followedAll standardsAll standardsAll standards
Standards reflect relevant international standards with departures only to improve qualityAll standardsAll standardsAll standards
Standards harmonised with Australia where appropriateN/AN/AAll standards

Timeliness

Standards issued in time for the commencement date to be no later than the international commencement dateAll standardsAll standardsN/A
Due process documents and Standards issued in time for the commencement date to be no later than the international commencement date (where relevant)N/AN/AAll documents and standards

Current and Past Policy Initiatives

Current and Past Policy Initiatives - Accounting and Assurance Standards Setting (M13) - Commerce
Policy InitiativeYear of
First
Impact		2011/12
Budgeted
$000		2012/13
Budget
$000		2013/14
Estimated
$000		2014/15
Estimated
$000		2015/16
Estimated
$000

Current Government

Proposed Fee and Levy Changes2012/13-105105105105
Financial Reporting and Assurance: Consolidating Standards-Setting Responsibilities within a Crown Entity2010/114,4104,3054,3054,3054,305
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