< Previous | Contents | Next >
BC7. Following the issue of IPSAS 41 in 2018 the NZASB agreed to develop a PBE Standard based on IPSAS 41 and to withdraw PBE IFRS 9. The NZASB noted that this would be in accordance with New Zealand’s Accounting Standards Framework and would:
(a) substantially align the requirements in PBE Standards with the most recent IPSAS;
(b) substantially align the requirements in PBE Standards with the equivalent requirements in NZ IFRS and minimise mixed group issues; and
(c) allow entities to adopt updated hedge accounting requirements that align more closely with an entity’s risk management practices and that can be applied more broadly than the hedge accounting requirements in PBE IPSAS 29.
BC8. The NZASB considered that the requirements of IPSAS 41 were generally appropriate for application by public benefit entities and followed its usual processes in modifying IPSAS 41 for application by Tier 1 and Tier 2 public benefit entities. Most of the changes made to IPSAS 41 were to ensure coherence within the suite of PBE Standards (in terms of aligning terminology and requirements with other PBE Standards). In the case of disclosure requirements added to PBE IPSAS 30 Financial Instruments: Disclosures as a result of this project the NZASB identified disclosure concessions for Tier 2 entities and aligned these with the disclosure concessions in NZ IFRS 7 Financial Instruments: Disclosures. The NZASB issued ED 2018-5 PBE IPSAS 41 Financial Instruments in November 2018 with comments due by 28 February 2019.
BC9. The specific modifications considered or made by the NZASB in developing PBE IPSAS 41 are outlined below.