Does New Zealand use IFRS?
IFRS Standards are adopted via New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), which are fully converged with IFRS Standards. Foreign companies whose securities are publicly traded in New Zealand are required to apply NZ IFRS.
What accounting standards are used in New Zealand?
The New Zealand Accounting Standards Framework uses International Financial Reporting Standards (IFRS) for for-profit entities that have a statutory requirement to prepare financial statements that comply with standards issued by the XRB, and International Public Sector Accounting Standards (IPSAS) as the starting …
What is the purpose of IFRS 2?
Intrinsic value is the difference between the fair value of the shares and the price that is to be paid for the shares by the counterparty. The objective of IFRS 2 is to determine and recognise the compensation costs over the period in which the services are rendered.
Does NZ use GAAP or IFRS?
Accounting standards issued by the XRB Board or the NZASB and are the primary indicators of generally accepted accounting practices (GAAP) in New Zealand.
What does NZ IAS stand for?
New Zealand Auditing and Assurance Standards
New Zealand Auditing and Assurance Standards Board. NZ IAS. New Zealand equivalent to an International Accounting Standard. NZICA. New Zealand Institute of Chartered Accountants (now CAANZ)
Who is required to use IFRS?
Who Uses IFRS? IFRS are required to be used by public companies based in a total of 120 countries, including all of the nations in the European Union as well as Canada, India, Russia, South Korea, South Africa, and Chile. The U.S. and China each have their own systems.
What is XRB?
The External Reporting Board (XRB) is an independent Crown Entity responsible for accounting and auditing & assurance standards in New Zealand. The XRB was originally established under section 22 of the Financial Reporting Act 1993, with continued existence under section 12 of the Financial Reporting Act 2013.
What is the objective of IFRS 3?
What is the objective of IFRS 3? The objective of IFRS 3 Business Combinations is to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects.
What IFRS 3?
The core principles in IFRS 3 are that an acquirer measures the cost of the acquisition at the fair value of the consideration paid; allocates that cost to the acquired identifiable assets and liabilities on the basis of their fair values; allocates the rest of the cost to goodwill; and recognises any excess of …
What companies need to be audited NZ?
Companies
- ‘large’ companies;
- ‘large’ overseas companies that carry on business in New Zealand;
- companies with 10 or more shareholders; and.
- companies with fewer than 10 shareholders that have decided to prepare audited financial statements.
What is a Tier 2 entity?
‘Tier 2’ entities comprise: For-profit private sector entities that do not have public accountability (e.g. large proprietary companies) Public sector entities (for-profit and not-for-profit) other than the Australian Government, State, Territory and Local Governments.
Who needs to follow IFRS?
Who Uses IFRS? IFRS are required to be used by public companies based in a total of 120 countries, including all of the nations in the European Union as well as Canada, India, Russia, South Korea, South Africa, and Chile.
What are the changes to NZ IFRS Tier 2?
• For entities moving from the Framework for Differential Reporting (tier 3) to NZ IFRS (RDR) (tier 2) there may be recognition and measurement accounting policy changes, along with changes in disclosure.
When do you need to disclose NZ IFRS and RDR?
These model financial statements can be used by tier 1 and tier 2 for-profit entities to identify the required NZ IFRS and NZ IFRS (RDR) disclosures in Group financial statements for a December 2013 balance date.
What does the New Zealand accounting standards framework do?
The current accounting standards framework sets down a financial reporting strategy for New Zealand and establishes which suite of reporting standards and reporting tiers apply to which entities. It involves a multi-standards, multi-tiered approach.
When do for-profit accounting standards come into effect?
For-profit entities must apply these current accounting standards (NZ IFRS, NZ IAS, FRS), interpretations (NZ IFRIC, NZ SIC) and other pronouncements issued by the XRB Board or the NZASB for periods beginning on or after 1 December 2012.