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-NZ IFRS 18 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS

-THE NZ CONCEPTUAL FRAMEWORK (REVISION OF ACCTG 102)
NZ IFRS 18 PRESENTATION and DISCLOSURE OF FINANCIAL STATEMENTS
Issued May 2024 and mandatory from 1 January 2027

Note: This Standard replaces NZ IAS 1 Presentation of Financial Statements. There have been many changes.

NZ IFRS 18, consisting of 149 pages, is split into the following:

Paragraphs 1 to 132 A selection of these paragraphs are on pages 1 to 9 of this document.
Appendix A Defined terms Six definitions are included below.
Appendix B Application guidance This appendix is an integral part of NZ IFRS 18. It describes the application of
paragraphs 1–132 and has the same authority as the other parts of NZ IFRS 18. Some Appendix B paragraphs are
included below.
Appendix C Commencement, application and transition
Appendix D Amendments to other NZ IFRSs These will be highlighted in other topics.
Appendix E Amendments to XRB A1 Application of the Accounting Standards Framework

Objective Each accounting standard has an objective

Para 1 This Standard sets out requirements for the presentation and disclosure of information
in general purpose financial statements (GPFS) to help ensure they provide relevant
information that faithfully represents an entity’s assets, liabilities, equity, income and
expenses.

Scope Which entities does this accounting standard apply to?

A NZ only paragraph
NZ Para 1.1 This standard applies only to Tier 1 and Tier 2 for-profit (FP) entities
Para 2 An entity shall apply this Standard in preparing and disclosing information in
financial statements prepared in accordance with NZ IFRS

Definitions = Defined terms Each accounting standard has definitions. Look in

Appendix A for IFRSs and in a paragraph for IAS’s.

GPFS (can be referred to as ‘financial statements’) = A particular form of general purpose

financial reports that provide information about the reporting entity’s assets, liabilities, equity,
income and expenses. The Inland Revenue can demand Special Purpose Financial Statements.

Operating profit or loss (P or L) = The total of all income and expenses classified in the
operating category.

Other comprehensive income (OCI) = Items of income and expense that are recognised
outside profit or loss as required or permitted by other NZ IFRSs.

Total comprehensive income (TCI) = The change in equity during a reporting period
resulting from transactions and other events, other than those changes resulting from
transactions with owners in their capacity as owners. P or L + OCI = TCI.

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Definitions continued:
Material Information = Information is material if omitting, misstating or obscuring it could
reasonably be expected to influence decisions that the primary users of general purpose
financial statements make on the basis of those financial statements, which provide financial
information about a specific reporting entity.
Appendix B Materiality B5 Many existing and potential investors, lenders, and other
creditors cannot require reporting entities to provide information directly to them and must
rely on general purpose financial statements for much of the financial information they
need. Consequently, they are the primary users to whom general purpose financial
statements are directed. Financial statements are prepared for users who have a reasonable
knowledge of business and economic activities and who review and analyse the
information diligently. At times, even well-informed and diligent users may need to seek the
aid of an adviser to understand information about complex economic phenomena.

Notes = Information in financial statements provided in addition to that prepared in the

primary* financial statements. *SFP, SCI, SCE, and SCF

Objective of financial statements

Para 9 The objective of financial statements is to provide financial information about a
reporting entity’s assets, liabilities, equity, income, and expenses that is useful to users of
financial statements in assessing the prospects for future net cash inflows to the entity and
in assessing management’s stewardship of the entity’s economic resources

A complete set of financial statements

Para 10 A complete set comprises: (allowed to use other names for these statements)
(a) As per Para 12:
Statement of Performance P or L and a Statement of OCI for the reporting period.
If combined into a single statement it is called a SCI.
(b) Statement of Financial Position SFP as at the end of the reporting period
(c) Statement of Changes in Equity SCE for the reporting period
(d) Statement of Cash Flows SCF for the reporting period
(e) Notes for the reporting period
(f) Comparative information in respect of the preceding period

The role of the primary financial statements and the notes

Para 15 To achieve the objective of financial statements, an entity presents information in
the primary financial statements and discloses information in the notes. An entity need only
present or disclose material information.
Para 16 The role of the primary financial statements is to provide structured summaries
of a reporting entity’s recognised assets, liabilities, equity, income, expenses, and cash flows,
that are useful to users of financial statements for:
(a) obtaining an understandable overview of the entity’s recognised assets, liabilities, equity, income,
expenses and cash flows;
(b) making comparisons between entities, and between reporting periods for the same entity; and

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-THE NZ CONCEPTUAL FRAMEWORK (REVISION OF ACCTG 102)
(c) identifying items or areas about which users of financial statements may wish to seek additional
information in the notes.
Appendix B8 Paragraph 23 explains that an entity need not present separately a line item in
a primary financial statement if doing so is not necessary for the statement to provide a
useful structured summary, even if the line item is required by NZ IFRS.
If an entity does not present the line items listed in paragraphs 75 and 103, it shall disclose
the items in the notes if the resulting information is material. (see paragraph 42).
Appendix B9 Conversely, an entity shall present additional line items to those listed in
paragraphs 75 and 103 if such presentations are necessary for the statement of profit or loss
to provide a useful structured summary of income and expenses or for the statement of
financial position to provide a useful structured summary of assets, liabilities and equity.

Para 17 The role of the notes is to provide material information necessary:

(a) to enable users of financial statements to understand the line items presented in the
primary financial statements; Example: B6(a) Disaggregate the line item
And (b) to supplement the primary financial statements with additional information to
achieve the objective of financial statements. Example: B7(a) Information specifically required
by NZ IFRs.

Frequency of reporting
Para 28 An entity shall provide a complete set of financial statements at least annually.

Comparative information
Para 31 Except when NZ IFRS permits or require otherwise, an entity shall provide
comparative information for all amounts reported in the current period’s financial statements.
An entity shall include comparative information for narrative and descriptive information if it
is necessary for an understanding of the current period’s financial statements.

Aggregation and disaggregation

Aggregate = combine several items together/total. Refer to Para 41(a) below.
Disaggregate = separate into individual items. Refer to Para 41(b) below.
Para 41 For the purposes of this Standard, an item is an asset, liability, equity instrument or
reserve, income, expense or cash flow or any aggregation or disaggregation of such assets,
liabilities, equity, income, expenses or cash flows.
A line item is an item that is presented separately in the primary financial statements. Other
material information about items is disclosed in the notes.
Unless doing so would override specific aggregation or disaggregation requirements in NZ
IFRS, an entity shall:
(a) classify and aggregate assets, liabilities, equity, income, expenses or cash flows into items
based on shared characteristics;
(b) disaggregate items based on characteristics that are not shared;

Para 41 continued:

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(c) aggregate or disaggregate items to present line items in the primary financial
statements that fulfil the role of the primary financial statements in providing useful
structured summaries;
(d) aggregate or disaggregate items to disclose information in the notes that fulfils the role
of the notes in providing material information (see paragraph 17); and
(e) ensure that aggregation and disaggregation in the financial statements do not obscure
material information

Statement of profit or loss

Para 46 an entity shall include ALL items of income and expense in a reporting period in the
Statement of P or L UNLESS an NZ IFRS requires or permits otherwise.

Para 47 An entity shall classify income and expenses included in the statement of profit or
loss in one of five categories.
(a) the operating category = 1
(b) the investing category = 2
(c) the financing category = 3
(d) the income taxes category = 4
(e) the discontinued operations category = 5

Detail and explanation for the first three categories:

(a) the operating category = 1
The residual category. What is left over after determining the other four categories. This will
typically include the entity’s results from its ‘main business activities’ and it will include
income and expenses that cannot be classified in the other categories applying paragraphs,
including such income or expenses that are volatile or non-recurring.

Appendix B30 Paragraph 49 requires an entity to assess whether it invests in assets or provides financing to
customers as a main business activity. An entity may have more than one main business activity.
For example, an entity that manufactures a product and also provides financing to customers may determine that
both its manufacturing activity and customer-finance activity are main business activities. To classify income
and expenses into the categories of operating, investing and financing as required by this Standard, an entity
need only determine whether either of, or both, investing in assets and providing financing to customers are
main business activities.

Appendix B48 Assets that an entity uses in combination to produce or supply goods or services do not generate
a return individually and largely independently of the entity’s other resources. Such assets typically include:
(a) property, plant and equipment;
(b) assets that arise from the production or supply of goods and services for which the income and expenses are
classified in the operating category (for example, receivables for such goods and services); and
(c) if the entity provides financing to customers as a main business activity, any loans to a customer.

Appendix B49 Income and expenses from the assets above are classified in the operating category— for
example:

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(a) revenue for goods or services produced or supplied by the entity using a combination of assets; (b) interest
income;
(c) depreciation and amortisation;
(d) impairment losses and reversals of impairment losses;
(e) income and expenses from the derecognition of the asset, or its classification and remeasurement as held for
sale; and
(f) income and expenses arising on a business combination that includes assets that will give rise to income and
expenses that will be classified in the operating category, such as a gain on a bargain purchase and
remeasurements of contingent consideration.

(b) the investing category = 2

This category includes:
- results of associates (Topic 6 Equity method)
- income and expenses of cash and cash equivalents
-assets that generate a return individually and largely independently of other resources.

Appendix B46 Assets that generate a return individually and largely independently of the entity’s other
resources in paragraph 53(c) typically include:
(a) debt or equity investments; and
(b) investment properties, and receivables for rent generated by those properties.
Appendix B47 Income and expenses from such assets typically include the following and are classified as
investing:
(a) interest;
(b) dividends;
(c) rental income;
(d) depreciation;
(e) impairment losses and reversals of impairment losses;
(f) fair value gains and losses; and
(g) income and expenses from the derecognition of the asset, or its classification and remeasurement as held for
sale.

(c) the financing category = 3

This category includes:
-all income and expenses from liabilities that involve the raising of finance
Appendix B50 liability examples: debentures, loans, notes, bonds and mortgages. Income and expenses example
of interest expense.
-interest expense from other liabilities

Statement of profit or loss continued:

Para 69 An entity shall present totals and subtotals in the statement of profit or loss for:

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(a) operating profit or loss = Operating profit or loss comprises all income and expenses classified
in the operating category.
(b) profit or loss before financing and income taxes =This is the Operating profit or loss plus the
investing category income and expenses.
(c) profit or loss =This is the total of income and expenses included in the statement of P or L

Para 75 (a), (b), and (c) An entity shall present in the statement of profit or loss line items
for:
- Revenue
- Interest revenue calculated using the effective interest method
- Insurance revenue
- Operating expenses
- Share of profit or loss of associates (Topic 6)
- Income tax expense
- Total of discontinued operations
- Impairment losses
- Plus other items not detailed in this document.

Five categories and new sub-total Statement of Profit or Loss Example

requirements: for the year ended
Revenue $x
Para 47 Operating category COGS (x)
Gross profit x
Selling expenses (x)
General and administrative expenses (x)
Para 69 subtotal Operating profit or (loss) X
Para 47 Investing category Interest income x
Share of Associate profit x
Para 69 subtotal Profit or (loss) before financing and income tax X
Para 47 Financing category Interest expense on borrowings (x)
Interest expense on other liabilities (x)
Profit before income tax x
Para 47 Income tax category Income tax expense (x)
Profit from continuing operations x
Para 47 Discontinued ops category Loss from Discontinued operations (x)
Para 69 subtotal Profit or (loss) for the year $X

Statement of profit or loss continued:

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Para 78 In the operating category of the statement of profit or loss, an entity shall classify
and present expenses in line items in a way that provides the most useful structured
summary of its expenses, using one or both of these characteristics:
(a) the nature of expenses; or
(b) the function of the expenses within the entity.

Appendix B80 In determining how to use the characteristics of nature and function to provide the most useful
structured summary as required by paragraph 78, an entity shall consider:
(a) what line items provide the most useful information about the main components or drivers of the entity’s
profitability.
For example, for a retail entity a main component or driver of profitability might be cost of sales. Presenting a
cost of sales line item might provide relevant information about whether the revenue generated from the sale of
goods covers what, for retailers, are mainly direct costs, and by what margin.
However, cost of sales is unlikely to provide relevant information about the important components or drivers
of profitability if the link between revenue and costs is less direct. For example, for some service entities,
information about operating expenses classified by nature, such as employee benefits, might be more relevant
to users of financial statements because these expenses are the main drivers of profitability.
(b) what line items most closely represent the way the business is managed and how management reports
internally. For example, a manufacturing entity managed on the basis of major functions might classify
expenses by function for internal reporting purposes.
In contrast, an entity that has a single predominant function, such as providing financing to customers, might
determine that line items comprising expenses classified by nature provide the most useful information for
internal reporting purposes.
(c) what standard industry practice entails. If expenses are classified in the same way by entities in an
industry, users of financial statements can more easily compare expenses between entities in the same industry.
(d) whether the allocation of particular expenses to functions would be arbitrary to the extent that the line
items presented would not provide a faithful representation of the functions. In such cases, an entity shall
classify these expenses by nature.

Statement of comprehensive income = SCI

Para 86 An entity shall present in the statement presenting comprehensive income totals
for:
(a) profit or loss (Total from Statement of Profit or have two sections if wanting only one
statement, i.e., P or L section and an OCI section in one statement. )
(b) other comprehensive income OCI*
(c) comprehensive income P or L plus OCI = TCI

*What are OCI income and expense items? Appendix B87 has a list of OCI items.
-Some NZ IFRSs specify circumstances when an entity recognises particular items outside profit or loss in the current
period. NZ IAS 8 specifies two such circumstances: the correction of errors and the effect of changes in accounting
policies.
-Other NZ IFRSs require or permit components of other comprehensive income that meet the NZ Framework’s definition
of income or expense to be excluded from profit or loss. NZ IAS 16 Revaluation gains and losses (some are OCI; refer
to Topic 3).

Statement of Financial Position = SFP

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Para 96 An entity shall present current and non-current assets and current and non-current
liabilities as separate classifications in its statement of financial position except when a
presentation based on liquidity provides a more useful structured summary.

Para 99 An entity shall classify an asset as current when :

(a) it expects to realise the asset or intends to sell or consume it, in its normal operating cycle
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within 12 months after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined in NZ IAS 7)

Para 101 An entity shall classify a liability as current when:

a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within 12 months after the reporting period; or
(d) it does not have the right at the end of the reporting period to defer settlement of the
liability for at least 12 months after the reporting period.

Para 103 An entity shall present in the statement of financial position line items for:
(a) property, plant, and equipment; (ACCTG 102 and Topic 3)
(b) investment property;
(c) intangible assets; (ACCTG 102 and Topic 3)
(d) goodwill; (Topics 3 and 6)
(e) financial assets (excluding amounts shown under (g), (j), and (k)); (ACCTG 311)
(f) portfolios of contracts
(g) investments accounted for using the equity method (Topic 6)
(h) biological assets within the scope of NZ IAS 41 Agriculture;
(i) inventories; (ACCTG 102)
(j) trade and other receivables; (ACCTG 102)
(k) cash and cash equivalents; (Topic 2)
(l) the total of assets classified as held for sale
(m) trade and other payables; (ACCTG 102)
(n) provisions; (ACCTG 102)
(o) financial liabilities (excluding amounts shown under (m) and (n)); (ACCTG 311)
(p) portfolios of contracts
(q) liabilities and assets for current tax (ACCTG 311)
(r) deferred tax liabilities and deferred tax assets (ACCTG 311)
(s) liabilities included in disposal groups classified as held for sale
Statement of Changes in Equity = SCE
Para 107 The statement of changes in equity shall include:

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(a) total comprehensive income for the reporting period TCI
(b) for each component of equity, the effects of retrospective application or retrospective
restatement recognised in accordance with NZ IAS 8 Topic 8
(c) for each component of equity, a reconciliation between the carrying amount at the
beginning and the end of the period, separately (as a minimum) presenting changes resulting
from: (i) profit or loss
(ii) other comprehensive income
(iii) transactions with owners in their capacity as owners, showing separately
contributions by and distributions to owners

Para 109 For each component of equity, an entity shall either present in the statement of
changes in equity (SCE) or disclose in the notes an analysis of other comprehensive income
by item OCI

Para 110 An entity shall either present in the statement of changes in equity or disclose in
the notes the amount of dividends recognised as distributions to owners during the reporting
period, and the related amount of dividends per share.

Notes The bulk of the GPFS/ annual report. Told to present systematically
Structure
Para 113 An entity shall disclose in the notes:
(a) information about the basis of preparation of the financial statements and the specific
accounting policies used. Refer to NZ IAS 8 Topic 8. Look at the Moana Annual Report.
(b) information required by NZ IFRS that is not presented in the primary financial statement
(c) information that is not presented elsewhere in the primary financial statements, but is
necessary for an understanding of any of them.

Management-defined performance measures (Para’s 117 to 125)

Para 117 A management-defined performance measure (MPMs) is a subtotal* of
income and expenses that:
(a) an entity uses in public communications outside financial statements;
(b) an entity uses to communicate to users of financial statements management’s view
of an aspect of the financial performance of the entity as a whole; and
(c) is not listed in paragraph 118, or specifically required to be presented or disclosed
by NZ IFRS.

This is a new single note disclosure requirement for MPMs such as EBITDA et cetera. They
apply if they are used in public communications outside the financial statements.
*This sub-total is not listed in IFRS or specifically required by IFRS

The purpose of the IASB’s Conceptual Framework is to assist the IASB in developing and revising IFRSs
that are based on consistent concepts, to help preparers to develop consistent accounting policies for areas
that are not covered by a standard or where there is choice of accounting policy, and to assist all parties to
understand and interpret IFRS. It has been described as a comprehensive framework.
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NZ CONCEPTUAL FRAMEWORK (Pages 10 to 14 of this document)

[Issued May 2018 and incorporates amendments to 31 January 2019]
It is authoritative support
The NZ Framework is equivalent to the IASB’s Conceptual Framework. The IASB’s
Conceptual Framework (and NZs) is not a Standard. Nothing in the IASB’s Conceptual
Framework overrides any Standard or any requirement in a Standard.

Chapter 1 The Objective of General Purpose Financial Reporting

1.1 The objective of general purpose financial reporting forms the foundation of the 2018
NZ Conceptual Framework.
1.2 The objective of general purpose financial reporting is to provide financial information
about the reporting entity that is useful to existing and potential investors, lenders and
other creditors in making decisions relating to providing resources to the entity.

Chapter 2 Quantitative Characteristics (QCs) of useful financial information.

2.4 If financial information is to be useful, it must be relevant and faithfully represent what it
purports to represent. The usefulness of financial information is enhanced if it is
comparable, verifiable, timely, and understandable.
2.5 The fundamental qualitative characteristics are relevance* and faithful representation.
2.23Comparability, verifiability, timeliness, and understandability are qualitative
characteristics that enhance the usefulness of information that is both relevant and provides a
faithful representation of what it purports to represent.
2.39 Cost is a pervasive constraint on the information that can be provided by financial
reporting. Reporting financial information imposes costs, and it is important that those costs
are justified by the benefits of reporting that information. There are several types of costs and
benefits to consider.
*Materiality is explained. Information is material if omitting, misstating, or obscuring it, could reasonably be
expected to influence decisions that the primary users of general purpose financial reports make on the basis of
those reports, which provide financial information about a specific reporting entity.

Chapter 3 Financial Statements and the Reporting Entity

3.2 The objective of financial statements is to provide information about an entity’s assets,
liabilities, equity, income and expenses that is useful to financial statements users in
assessing the prospects for future net cash inflows to the entity and in assessing
management’s stewardship of the entity’s economic resources.
3.4 Financial statements are prepared for a specified period of time (reporting period).
3.10 A reporting entity is an entity that is required, or chooses, to prepare financial
statements. A reporting entity can be a single entity or a portion of an entity or can comprise
more than one entity (Topic 6). A reporting entity is not necessarily a legal entity.

Chapter 4 The Elements of Financial Statements How many elements are there?
4.1 The elements of financial statements defined in the 2018 NZ Conceptual Framework are:
(a) assets, liabilities, and equity, which relate to a reporting entity’s financial position; and

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(b) income and expenses, which relate to a reporting entity’s financial performance.
Profit is used as a measure of
performance

Definition of an asset
4.3 An asset is a present economic resource controlled by the entity as a result of past events.

4.4 An economic resource is a right that has the potential to produce economic benefits.

The use of the expression ‘economic resource’ instead of simply ‘resource’ stresses that the IASB no longer thinks of
assets as physical objects but as a set of rights. The definitions of assets and liabilities also no longer refer to ‘expected’
inflows or outflows. Instead, the definition of economic resource refers to the potential of an asset/liability to produce/to
require a transfer of economic benefits.

EY publication Applying IFRS April 2018:

For the definition of an asset: The potential economic benefits no longer need to be ‘expected’ to flow to the entity. They
do not need to be certain or even likely.
For the definition of liability: The new definition clarifies that a liability is the obligation to transfer an economic
resource, and not the ultimate outflow of economic benefits. The outflow no longer needs to be ‘expected’.

Definition of a liability
4.26 A liability is a present obligation of the entity to transfer an economic resource as a
result of past events.

4.29 An obligation is a duty of responsibility that the entity has no practical ability to avoid.

4.27 For a liability to exist, three criteria must all be satisfied:

(a) the entity has an obligation
(b) the obligation is to transfer an economic resource
(c) the obligation is a present obligation that exists as a result of past events.

Note: Not all items that meet the definition of asset and liability are recognised in the SFP. (Para 5.6)

Definition of equity
4.63 Equity is the residual interest in the assets of the entity after deducting all its liabilities.
Note: Think about the accounting equation E = A - L

Definitions of income and expenses

4.68 Income is increases in assets, or decreases in liabilities, that result in increases in
equity, other than those relating to contributions from holders of equity claims.

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4.69 Expenses are decreases in assets, or increases in liabilities, that result in decreases in
equity, other than those relating to distributions to holders of equity claims.

4.70 It follows from these definitions of income and expenses that contributions from holders
of equity claims are NOT income, and distributions to holders of equity claims are NOT
expenses.

Note: Not all items that meet the definition of income and expense are recognised in the SCI. (Para 5.6)

Definition of income and expenses excludes contributions and distributions from/to equity claims.

Contributions = cash received from issue of shares to shareholders

General journal entry would be:
Dr Cash………………………………………………….xx
Cr Share Capital (i.e. not Cr Income)……………………..xx

Distributions = dividends to owner/shareholders

General journal entry would be:
Dr Dividend declared (i.e. not Dr Expense)…………..xx
Cr Dividend Payable…………………………….………xx

Chapter 5 Recognition and Derecognition

5.1 Recognition is the process of capturing for inclusion in the Statement of Financial
Position (SFP) or the Statement(s) of Financial Performance, an item that meets the
definition of one of the (five) elements of financial statements.
Recognition involves depicting the item in one of the statements – in words and by a
monetary amount. The amount at which an asset, a liability, or equity is recognised in the SFP
is referred to as its ‘carrying amount.’
5.3 Recognition links the elements, the statement of financial position, and the statement(s)
of financial performance.

Recognition criteria
5.6 However, not all items that meet the definitions of the elements are recognised.
5.7 An asset/liability is recognised ONLY if recognition of that asset or liability and any
resulting income, expenses or change in equity provides users of financial statements with:
(i) relevant* information about the element and
(ii) faithful representation** of the element.
These are the two criteria for recognition.

*Capable of making a difference to decisions made by users. **Complete, neutral and free from error. Affected
by measurement uncertainty.

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Note: Definition plus recognition criteria = included in the Statement of Financial Position (SFP) or the
Statement(s) of Financial Performance.

5.26 Derecognition is the removal of all or part of a recognised asset or liability from an
entity’s statement of financial position. Derecognition normally occurs when that item no
longer meets the definition of an asset or of a liability.

Chapter 6-Measurement

6.1 Elements recognised in financial statements are quantified in monetary terms. This
requires the selection of a measurement basis. Applying a measurement basis to an asset or
liability creates a measure for that asset or liability and for related income and expenses.

Measurement bases:
1. Historical cost (HC) measurement basis
Reflects, at least in part, the cost of acquiring or creating an asset or taking on a liability.
Described as an entry value. HC of assets is reduced if they become impaired.

2. Current value measurement basis

Reflects conditions at the measurement date.

(i) Fair value (FV) reflects a price from the perspective of market participants. The price
that would be received to sell an asset, or paid to transfer a liability. Described as an exit
value.

(ii)Value in use (VIU) for assets and fulfilment value for liabilities. They reflect the entity-
specific PV of future cash flows. Described as an exit value.

(iii) Current cost reflects the current amount that would be paid to acquire an equivalent
asset and the current amount that would be received to take on an equivalent liability.
Described as an entry value.

The factors to be considered in selecting a measurement basis are in line with the qualitative
characteristics of useful information.

Measurement bases and the information provided by particular measurements are described
in detail in paragraphs 6.4 to 6.42.

List of Abbreviations:

ASRB Accounting Standards Review Board

FMA Financial Markets Authority

GAAP Generally Accepted Accounting Practices

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 TOPIC 1 READING
-NZ IFRS 18 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
-THE NZ CONCEPTUAL FRAMEWORK (REVISION OF ACCTG 102)
GPFS General Purpose Financial Statements

IAS International Accounting Standard

IASB International Accounting Standards Board

IFRS International Financial Reporting Standard

IPSAS International Public Sector Accounting Standards

IPSASB International Public Sector Accounting Standards Board

NFP Not-for-profit

NZ IFRS RDR NZ IFRS with reduced disclosure regime

PBE Public Benefit Entity

PBE Standards RDR PBE Standards with reduced disclosures

PBE SFR-A Public Benefit Entity Simple Format Reporting - Accrual

PBE SFR-C Public Benefit Entity Simple Format Reporting - Cash

RDR Reduced Disclosure Regime

Tier Strategy Criteria for establishing different tiers of financial reporting in respect of
different classes of relevant reporting entities

XRB External Reporting Board. The XRB is a Crown Entity responsible for developing and
issuing accounting and auditing & assurance standards in New Zealand.

14
Semester 1 2025