✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
| Standard Reference | Standard Title | Effective Date
(accounting periods
beginning on or after) | Application
Date for Group |
|-----------------------|----------------------------------------------------|------------------------------------------|----------------------|
| NZ IFRS 9 | Financial Instruments: Classification and Measurement | 1 January 2015 | 1 April 2015 |
NZ IFRS 9 (2009) Financial Instruments: The requirements of this standard represent a significant change from the existing requirements of NZ IAS 39 in respect of financial assets. The standard contains two primary measurement categories for financial assets: amortised cost and fair value, and eliminates the existing NZ IAS 39 categories of held to maturity, available for sale, and loans and receivables. Financial assets would be measured at amortised cost if they are held to collect contractual cash flows and interest on specified dates. All other financial assets would be measured at fair value.
NZ IFRS 9 (2010) Financial Instruments: The requirements for classifying and measuring financial liabilities were added to NZ IFRS 9 as issued in 2009. The existing NZ IAS 39 requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities, the change in fair value is accounted for as follows: The change attributable to changes in credit risk are presented in Other Comprehensive Income, the remaining change is presented in profit or loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss.
The Group does not plan to early adopt the above Financial Reporting Standard. A formal impact assessment has been undertaken. This Standard is not expected to have a material impact on the Group’s financial statements in the period of initial application.
Changes to the Financial Reporting Framework: Public Benefit Entities
In July 2012, the Financial Reporting Bill was introduced into Parliament to replace the current Financial Reporting Act 1993. The expected date of enactment is in April 2015.
The proposed changes to the Financial Reporting Act require the External Reporting Board (XRB) to set the financial reporting requirements for registered charities and other not-for-profit entities that have financial reporting obligations.
Under changes proposed by the XRB, the Group will be required to follow the not-for-profit sector applications within a new suite of accounting standards.
The exposure drafts for these standards are expected to be issued in mid to late 2013, and are expected to be effective for accounting periods beginning on or after 1 April 2015.
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NZ Gazette 2013, No 114
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ASB Community Trust Financial Statements Notes
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Cash Flows, Revenue, Grants, ASB Community Trust