New Zealand Releases 3rd Package Containing Exposure Related Drafts
New Zealand’s XRB as well as the NZASB have together issued a 3rd package containing exposure related drafts, which have been designed for implementing the revised accounting standard structure of New Zealand. The package would lead to optional utilization of the ‘simple format reporting standards’ for the non-profit organization on the basis of accrual accounting or cash related accounting, based on fulfilling certain criteria.
Following are the entities that will be eligible for applying for each category
Tier three: The entities that are non-publicly accountable (as per definition) and have expenses lesser than 2 million New Zealand dollars and which opt for Tier three
Tier Four: Organizations that have been permitted by law to utilize cash accounting and which opts for Tier four
Those organizations that don’t opt for these particular tiers will have to consider applying the proposed ‘Public Benefit Entity Standards’ based on IPSAS (International Public Sector Accounting Standards) with slight alterations.
The ED’s (Exposure Drafts) lay down the reporting needs for every tier, simplify the measurement and recognition related requirements as well as have been crafted in simple language and are not very technical. For example, the accrual accounting related exposure draft lays down the usual categories pertaining to transactions as well as proposes a guide regarding the situations that are apt for recognizing these transactions.
The package consists of ED’s of templates that are optional in addition to associated notes related guidance for reporting based on a simple format by Tier three as well as Tier four non-profit organizations.
The External Reporting Board and New Zealand Accounting Standards Board are hoping to release two more packages containing ED’s in the upcoming months. While one of them deals with ‘'simple format reporting standards' meant for entities that operate in public sector for the benefit of public, the other one contains Public Benefit Entity Standards, which have been revised. The tier two organizations would gain as a result of a ‘reduced disclosure regime'. However, they would otherwise be applying the measurement and recognition needs of the PBE Standards. The 3rd package containing ED’s is available for commenting only till 28th of June 2013.
- Xero to Acquire HubDoc in Deal Worth $70m
- FRC Imposes Fine of £18m on Audit Firms during the Previous Year
- More than One Million Married and Civil Partnered couples Failed in taking Advantage of the Marriage Allowance
- SEC Fines the Swiss Investment Bank $30m Over Bribery Charges
- Simplified Contract to Aid SMEs Wanting to Apply for Government Work
- Commission Opens an Inquiry against Charity over Poor Financial Controls
- EU Introduces New Laws Regarding Money Laundering Sanctions