Waikato River Authority Annual Report
2012
37
It also includes those paragraphs of NZ IAS 39 dealing with how to measure
fair value and accounting for derivatives embedded in a contract that
contains a host that is not a financial asset, as well as the requirements of
IFRIC 9 Reassessment of Embedded Derivatives.
The impact of these amendments on the trust’s financial statements has not
yet been determined.
The Minister of Commerce has approved a new Accounting Standards Framework
(incorporating a Tier Strategy) developed by the External Reporting Board (XRB).
Under this Accounting Standards Framework, the Trust is classified as a Tier 2
reporting entity and it will be required to apply Public Benefit Entity Accounting
Standards (PAS) with reduced disclosure requirement. These standards are being
developed by the XRB based on current International Public Sector Accounting
Standards. The effective date for the new standards for public sector entities
is expected to be for reporting periods beginning on or after 1 July 2014. This
means the Trust expects to transition to the new standards in preparing its 30
June 2015 financial statements. As the PAS are still under development, the Trust
is unable to assess the implications of the new Accounting Standards Framework
at this time.
Due to the change in the Accounting Standards Framework for public benefit
entities, it is expected that all new NZ IFRS and amendments to existing NZ
IFRS will not be applicable to public benefit entities. Therefore, the XRB has
effectively frozen the financial reporting requirements for public benefit entities
up until the new Accounting Standard Framework is effective. Accordingly, no
disclosure has been made about new or amended NZ IFRS that exclude public
benefit entities from their scope.
Presentation of Items of Other Comprehensive Income (Amendments to NZ IAS 1)
Effective date - periods beginning on or after: 1 July 2012
The amendments:
- require that an entity present separately the items of other comprehensive
income that would be reclassified to profit or loss in the future if certain
conditions are met from those that would never be reclassified to profit or
loss;
- do not change the existing option to present profit or loss and other
comprehensive income in two statements; and
- change the title of the statement of comprehensive income to the statement
of profit or loss and other comprehensive income. However, an entity is still
allowed to use other titles.
The amendments do not address which items are presented in other
comprehensive income or which items need to be reclassified. The requirements
of other IFRSs continue to apply in this regard.
The impact of these amendments on the trust’s financial statements has not yet
been determined.
4 Determination of fair values
A number of the trust’s accounting policies and disclosures require the
determination of fair value, for both financial and non-financial assets and liabilities.
Where applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or liability.