✨ Financial Regulation Amendments
NEW ZEALAND GAZETTE, No. 16 — 19 FEBRUARY 2015
2. Commencement
This order comes into force on 31 March 2015.
3. Principal order amended
This order amends the Registered Bank Disclosure Statements (New Zealand Incorporated Registered Banks) Order 2014.
4. Interpretation
(1) This clause amends clause 4(1).
(2) Replace the definition of “individually impaired asset” with:
“individually impaired asset means a financial asset that is individually determined to be impaired in accordance with NZ IAS 39 or meets the definition of a ‘credit-impaired financial asset’ in accordance with NZ IFRS 9, consistent with the impairment methodology the registered bank applies in preparing its financial statements”
(3) After the definition of “LGD”, insert:
“loss allowance has the same meaning as in NZ IFRS 9”
(4) After the definition of “NZ IFRS 7”, insert:
“NZ IFRS 9 means New Zealand Equivalent to International Financial Reporting Standard 9 (Financial Instruments), approved under the Financial Reporting Act 2013”
5. Clause 3 of Schedule 7 amended
In clause 3(1) of Schedule 7 replace “past due and not impaired” with “past due and are not individually impaired assets”.
6. Clause 4 of Schedule 7 amended
In clause 4 of Schedule 7 replace “Information” with “If the registered bank assesses credit impairment allowances in accordance with NZ IAS 39, information”.
7. Clause 5 of Schedule 7 amended
In clause 5(1) of Schedule 7 replace “Information” with “If the registered bank assesses credit impairment allowances in accordance with NZ IAS 39, information”.
8. Clause 6 of Schedule 7 amended
In clause 6(1) of Schedule 7 replace “Information” with “If the registered bank assesses credit impairment allowances in accordance with NZ IAS 39, information”.
9. New clauses in Schedule 7
After clause 6 of Schedule 7 insert:
“6A Movements in components of loss allowance (NZ IFRS 9)
(1) In the half year disclosure statement, if the registered bank measures loss allowances for financial instruments in accordance with NZ IFRS 9, a reconciliation from the opening balance to the closing balance of the loss allowance as if paragraph 35H of NZ IFRS 7 applied.
(2) When disclosing the information specified in subclause (1), and when disclosing the information required by paragraph 35H of NZ IFRS 7 for the full year disclosure statement, the registered bank must include the items in subclause (3) in respect of the loss allowance, to the extent not otherwise disclosed to comply with NZ IFRS 7.
(3) The items referred to in subclause (2) are:
(a) the opening balance;
(b) the charge (credit) to the statement of financial performance for an increase or decrease in individual loss allowances;
(c) amounts written off;
(d) recoveries of amounts written off in previous periods;
(e) reversals of previously recognised impairment losses;
(f) other movements, and the nature of those other movements; and
(g) the closing balance.
6B Impacts of changes in gross financial assets on loss allowances (NZ IFRS 9)
(1) In the half year disclosure statement, if the registered bank measures loss allowances for financial
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NZ Gazette 2015, No 16
✨ LLM interpretation of page content
💰
Registered Bank Disclosure Statements Amendment Order 2015
(continued from previous page)
💰 Finance & Revenue16 February 2015
Bank disclosure, Reserve Bank of New Zealand Act 1989, Financial regulation, NZ IFRS 9, Impairment methodology