September 2023

Our September 2023 edition of Financial Reporting Insights keeps you up to date with the latest New Zealand and global developments in financial and sustainability reporting.

• Incorporated Societies – Its almost time to apply for registration under the Incorporated Societies Act 2022 and get ready for financial reporting
  Attention Incorporated Societies: registration under the Incorporated Societies Act 2022 opens on 5 October 2023. Are you ready for transition and need to prepare financial statements? 

• Big changes on the way for Tier 1 and Tier 2 for profits’ primary financial statements’ presentation
  Just when you thought the big changes to financial reporting were over, the IAS is about to release a new standards that will significantly change the presentation requirements of IFRS Accounting Standards.

• How does the acquirer in a business combination account for the acquiree’s lease restoration provisions?
  In a business combination, the acquirer needs to take care when an acquire has a lease restoration provision.

• Month-to-month leases are not always short-term leases
  Month-to-month leases and undocumented leases often have an enforceable period and lease term longer than twelve months, which means they must be capitalised on the statement of financial position.

• How to determine the exchange rate when a currency is not exchangeable into another currency
  How do you account for foreign currency transactions and balances when the foreign currency in not exchangeable with your functional currency?