NZ IFRIC 10

Interim Financial Reporting and Impairment

Mandatory Date:

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Statement of Authority

Interim Financial Reporting and Impairment (NZ IFRIC 10)

Issued September 2006 and incorporates amendments to 31 December 2016

This Interpretation was issued by the New Zealand Accounting Standards Board of the External Reporting Board pursuant to section 24(1)(a) of the Financial Reporting Act 1993.

This Interpretation is a Regulation for the purposes of the Regulations (Disallowance) Act 1989.

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How to read this Standard

New Zealand Equivalent to IFRIC Interpretation 10 Interim Financial Reporting and Impairment (NZ IFRIC 10) is set out in paragraphs 1–14.

NZ IFRIC 10 is based on IFRIC 10 Interim Financial Reporting and Impairment (IFRIC 10). NZ IFRIC 10 should be read in the context of the IFRIC’s Basis for Conclusions on IFRIC 10.

Any New Zealand additional material is shown with either “NZ” or “RDR” preceding the paragraph number.

Reduced Disclosure Regime

Tier 2 for-profit entities must comply with all the provisions in NZ IFRIC 10.

New Zealand Equivalent to IFRIC Interpretation 10 - Interim Financial Reporting and Impairment (NZ IFRIC 10)

NZ IFRS 9 Financial Instruments
NZ IAS 34 Interim Financial Reporting
NZ IAS 36 Impairment of Assets

1 An entity is required to assess goodwill for impairment at the end of each reporting period, and, if required, to recognise an impairment loss at that date in accordance with NZ IAS 36. However, at the end of a subsequent reporting period, conditions may have so changed that the impairment loss would have been reduced or avoided had the impairment assessment been made only at that date. This Interpretation provides guidance on whether such impairment losses should ever be reversed.

2 The Interpretation addresses the interaction between the requirements of NZ IAS 34 and the recognition of impairment losses on goodwill in NZ IAS 36, and the effect of that interaction on subsequent interim and annual financial statements.

NZ2.1 This Interpretation applies to Tier 1 and Tier 2 for-profit entities.

3 NZ IAS 34 paragraph 28 requires an entity to apply the same accounting policies in its interim financial statements as are applied in its annual financial statements. It also states that ‘the frequency of an entity’s reporting (annual, half-yearly, or quarterly) shall not affect the measurement of its annual results. To achieve that objective, measurements for interim reporting purposes shall be made on a year-to-date basis.’

4 NZ IAS 36 paragraph 124 states that ‘An impairment loss recognised for goodwill shall not be reversed in a subsequent period.’

5–6 [Deleted by IASB]

7 The Interpretation addresses the following issue:

Should an entity reverse impairment losses recognised in an interim period on goodwill if a loss would not have been recognised, or a smaller loss would have been recognised, had an impairment assessment been made only the end of a subsequent reporting period?

8 An entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill.

9 An entity shall not extend this consensus by analogy to other areas of potential conflict between NZ IAS 34 and other standards.

10 This Interpretation becomes operative for an entity’s financial statements that cover annual accounting periods beginning on or after 1 January 2007. For entities which elect to comply with NZ IFRS 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards for an annual accounting period

beginning on or after 1 January 2005 and before 1 January 2007, this Interpretation becomes operative for annual accounting periods beginning on or after 1 November 2006. Early application is encouraged. If an entity applies this Interpretation to a period beginning before 1 November 2006, it shall disclose that fact. An entity shall apply the Interpretation to goodwill prospectively from the date at which it first applied NZ IAS 36; it shall apply the Interpretation to investments in equity instruments or in financial assets carried at cost prospectively from the date at which it first applied the measurement criteria of NZ IAS 39.

NZ10.1 Framework: Tier 1 and Tier 2 For-profit Entities, issued in November 2012, amended extant NZ IFRSs by deleting any public benefit entity paragraphs, deleting any differential reporting concessions, adding scope paragraphs for Tier 1 and Tier 2 for-profit entities and adding disclosure concessions for Tier 2 entities. It made no changes to the requirements for Tier 1 entities. A Tier 2 entity may elect to apply the disclosure concessions for annual periods beginning on or after 1 December 2012. Early application is permitted.

11–13 [Deleted by IASB]

14 NZ IFRS 9, as issued in September 2014, amended paragraphs 1, 2, 7 and 8 and deleted paragraphs 5, 6, 11−13. An entity shall apply those amendments when it applies NZ IFRS 9.

BC1–BC12 [Paragraphs BC1–BC12 do not form part of NZ IFRIC 10.]

Table of Pronouncements – NZ IFRIC 10 Interim Financial Reporting and Impairment

This table lists the pronouncements establishing and substantially amending NZ IFRIC 10. The table is based on amendments approved as at 31 December 2016.

Pronouncements	Date approved	Early operative date	Effective date (annual reporting periods… on or after …)
NZ IFRIC 10 Interim Financial Reporting and Impairment	Sept 2006	1 Nov 2006 Early application encouraged	1 Jan 2007
NZ IAS 1 Presentation of Financial Statements (revised 2007)	Nov 2007	Early application permitted	1 Jan 2009
NZ IFRS 9 Financial Instruments (2009)	Nov 2009	Early application permitted	1 Jan 20131
NZ IFRS 9 Financial Instruments (2010)	Nov 2010	Early application permitted	1 Jan 20132
Framework: Tier 1 and Tier 2 For-profit Entities3	Nov 2012	Early application permitted	1 Dec 2012
NZ IFRS 9 Financial Instruments (2013) (Hedge Accounting and Amendments to NZ IFRS 9, NZ IFRS 7 and NZ IAS 39)	Dec 2013	Early application permitted	1 Jan 20174
NZ IFRS 9 Financial Instruments (2014)	Sept 2014	Early application permitted	1 Jan 2018

Table of Amended Paragraphs in NZ IFRIC 10

Paragraph affected	How affected	By … [date]
Various	Terminology changed	NZ IAS 1 [Nov 2007]
References	Amended	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 1	Amended	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 2	Amended	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 5	Deleted	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 6	Deleted	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 7	Amended	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 8	Amended	NZ IFRS 9 (2009) [Nov 2009], NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]

Table of Amended Paragraphs in NZ IFRIC 10
Paragraph affected	How affected	By … [date]
Paragraph NZ 10.1	Added	Framework: Tier 1 and Tier 2 For-profit Entities [Nov 2012]
Paragraph 11	Added	NZ IFRS 9 (2009) [Nov 2009]
Paragraph 11	Deleted	NZ IFRS 9 (2010) [Nov 2010], NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 12	Added	NZ IFRS 9 (2010) [Nov 2010]
Paragraph 12	Deleted	NZ IFRS 9 (2013) [Dec 2013] and NZ IFRS 9 (2014) [Sept 2014]
Paragraph 13	Added	NZ IFRS 9 (2013) [Dec 2013]
Paragraph 13	Deleted	NZ IFRS 9 (2014) [Sept 2014]
Paragraph 14	Added	NZ IFRS 9 (2014) [Sept 2014]

1Superseded by NZ IFRS 9 Financial Instruments (2014). NZ IFRS 9 (2014) restricted early application of earlier versions of NZ IFRS 9.

2Superseded by NZ IFRS 9 Financial Instruments (2014). NZ IFRS 9 (2014) restricted early application of earlier versions of NZ IFRS 9.

3 This pronouncement amended extant NZ IFRSs by (i) deleting any public benefit entity paragraphs, (ii) deleting any differential reporting paragraphs, (iii) adding scope paragraphs for Tier 1 and Tier 2 for-profit entities, and (iv) adding RDR disclosure concessions.

4Superseded by NZ IFRS 9 Financial Instruments (2014). NZ IFRS 9 (2014) restricted early application of earlier versions of NZ IFRS 9.