General
The tables of differences between NZ IFRS (PBE) and the new Public Sector PBE Standards listed below are work-papers prepared by Treasury to help us identify differences between the current standards applying until 30 June 2014 (NZ IFRS [PBE]) and the new set of standards applying from 1 July 2014 (Public Sector PBE Standards).
The emphasis of these initial schedules is differences in recognition and measurement. While a number of disclosure differences have been picked up and recorded during the process, a comprehensive review of disclosure changes will be completed during phase four of the transition project.
These tables include most of the differences arising from the introduction of the new standards, but they are not exhaustive and are intended only to provide an indication of the impact on accounting policies and treatment.
The good news is that we have identified very few significant differences, and therefore we do expect major changes to the recognition and measurement of items in the Financial Statements of the Government (FSG).
We encourage you to use the tables to identify recognition and measurement differences that will affect your individual financial statements. We also encourage you to investigate further any items you identify as having a potential impact.
Content
Where there is a difference between the NZ IFRS PBE standards and the new Public Sector PBE Standards we have noted the following:
- the current requirement under NZ IFRS (PBE);
- the new requirement under Public Sector PBE Standards; and
- our comments on the difference.
For some differences we have noted the expected impact (or often the lack of expected impact) the change will have on the Financial Statements of the Government and the individual PBE reporting entities within the Crown group.
Not all standards have been included in this review. This is either because they are not relevant to the Crown reporting group (e.g. Accounting in Hyperinflationary Economies), or there has been no substantive change from the NZ IFRS (PBE) standard (e.g. Business Combinations). Two standards have not been reviewed in detail (PBE IPSAS 20 – Related parties and PBE IPSAS 30 Financial Instruments) as they cover disclosure requirements and will therefore be reviewed during phase four of the project.
Feedback
If you would like to discuss the contents of these schedules, please call Angela Ryan on (04) 917 6102 or e-mail [email protected] or Emma Taylor on (04) 890 7291 or e-mail [email protected].
Schedule of Public Sector PBE Standards - Differences to NZIFRS PBE Standards
Each accounting standard within the suite of PBE Standards is prefixed with "PBE" followed by the source nomenclature and number, e.g. PBE IPSAS 1, PBE IFRS 5, PBE IAS 12 and PBE FRS 42.
PBE IPSAS 1 - Presentation of Financial Statements
PBE IPSAS 2 - Cash Flow Statements
PBE IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors
Not reviewed as no significant differences.
PBE IPSAS 4 - The Effects of Changes in Foreign Exchange Rates
PBE IPSAS 5 - Borrowing Costs
PBE IPSAS 6 - Consolidated and Separate Financial Statements
PBE IPSAS 7 - Investments in Associates
PBE IPSAS 8 - Interests in Joint Ventures
PBE IPSAS 9 - Revenue from Exchange Transactions
PBE IPSAS 10 - Financial Reporting in Hyperinflationary Economies
Not reviewed as not applicable.
PBE IPSAS 11 - Construction Contracts
PBE IPSAS 12 - Inventories
PBE IPSAS 13 - Leases
PBE IPSAS 14 - Events After the Reporting Date
Not reviewed as no significant differences.
PBE IPSAS 16 - Investment Property
PBE IPSAS 17 - Property, Plant and Equipment
PBE IPSAS 19 - Provisions, Contingent Liabilities and Contingent Assets
PBE IPSAS 20 - Related Party Disclosures
Summary, not fully reviewed.
PBE IPSAS 21 - Impairment of Non-Cash-Generating Assets
PBE IPSAS 22 - Disclosure of Information About the General Government Sector
Not reviewed as not applicable.
PBE IPSAS 23 - Revenue from Non-Exchange Transactions
PBE IPSAS 25 - Employee Benefits
PBE IPSAS 26 - Impairment of Cash-Generating Assets
PBE IPSAS 27 - Agriculture
PBE IPSAS 28 - Financial Instruments: Presentation
PBE IPSAS 29 - Financial Instruments: Recognition and Measurement
PBE IPSAS 30 - Financial Instruments: Disclosures
Summary, not fully reviewed.
PBE IPSAS 31 - Intangible Assets
PBE IPSAS 32 - Service Concession Arrangements: Grantor
PBE IFRS 3 - Business Combinations
Not reviewed as no significant differences.
PBE IFRS 4 - Insurance Contracts
PBE IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
Not reviewed as no significant differences.
PBE IAS 12 - Income Taxes
Not reviewed as no significant differences.
PBE IAS 34 - Interim Financial Reporting
Not reviewed as no significant differences.
PBE FRS 42 - Prospective Financial Statements
Not reviewed as no significant differences.
PBE FRS 43 - Summary Financial Statements
Not reviewed as no significant differences.
PBE FRS 45 - Service Concession Arrangements: Operator
Not reviewed as no significant differences to NZ IFRS equivalent, NZ IFRIC 12 Service Concession Arrangements.
PBE FRS 46 - First-time Adoption of PBE Standards by Entities Previously Applying NZ IFRSs
Not reviewed.
PBE FRS 47 - First-time Adoption of PBE Standards by Entities Other Than Those Previously Applying NZ IFRSs
Not reviewed as not applicable.