DECEMBER 2023 INSIGHTS

• Time to clean up your accounting policies 

Entities will need to streamline accounting policies so that their 31 December 2023 financial statements only contain material accounting policy information. What does this mean?  

• Your primary financial statements may look different in future 

Expect your statement of profit or loss to look different when IFRS 18 is released next year. You will be required to disclose your operating profit, and a reconciliation of management performance measures to statutory profit.  

• Expired leases in ‘hold over’ are not short-term leases 

Lease payments incurred in a hold over period at the end of a lease must be capitalised in the balance sheet, and not expensed as incurred.  

• XRB Comparison Document: Aotearoa New Zealand Climate Standards and IFRS® Sustainability Disclosure Standards

The New Zealand External Reporting Board (XRB)  has published a comparison document on  the differences between the New Zealand and international climate standards.
 

• FMA publishes updated scenario analysis information sheet for Climate Related Disclosures Regime and final record keeping guidance and a proposed timing exemption for listed issuers and registered banks

The Financial Markets Authority (FMA) has updated their Climate-related Disclosures – Scenario analysis information sheet which sets out how the FMA will apply the CRD framework relating to scenario analysis going forward. In addition the FMA has issued final record keeping guidance for CREs on meeting their climate-related record keeping obligations. An exemption with conditions is also proposed for listed issuers or registered banks.
 

• An update on Australia’s progress towards Sustainability Reporting Standards implementation

For New Zealand entities with reporting obligations in Australia, please note that the Australian Accounting Standards Board has released Exposure Draft (ED SR1) Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information.