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Trans-Tasman Accounting Convergence Work Completed

by Mary Swire, Tax-News.com, Hong Kong

20 May 2011


The Australian Accounting Standards Board (AASB) and the New Zealand Financial Reporting Standards Board (FRSB) have issued Australian Accounting Standards and New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) which complete the convergence work on accounting standards for publicly accountable for-profit Australian and New Zealand entities. 


The convergence work has been the result of co-operation and compromise on the part of the Australian and New Zealand Boards working together over some time.

 


The Chairman of the AASB, Kevin Stevenson, said that: “The benefits of the new standards will be consistency of reporting across the Tasman and reduced preparation costs". 




“They also open the way for the relevant government agencies to remove the burdens associated with regulation affecting financial reporting by branches, subsidiaries and sub-consolidations,” he added. 




The Chairman of the FRSB, Joanna Perry, said that: “The standard setters have completed their share of the trans-Tasman convergence for for-profit entities. We now call on both governments to make legislative changes to permit an entity to prepare a single financial report that is acceptable in both Australia and New Zealand.” 




The Standards, which are effective from July 1, 2011, are AASB 1054 Australian Additional Disclosures, AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project and AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements. 




The New Zealand standards are FRS-44 New Zealand Additional Disclosures and Amendments to New Zealand Equivalents to International Financial Reporting Standards to Harmonize with International Financial Reporting Standards and Australian Accounting Standards (Harmonization Amendments). 




The new standards were developed with the help of a public consultation on the proposals on an Exposure Draft published in July 2010. 




The changes are centred on closer alignment with International Financial Reporting Standards (IFRS) in both jurisdictions and involve removing many of the additional (domestic) disclosures previously required. Convergence is expected to be maintained by both jurisdictions maintaining IFRS adoption for the relevant entities. 


TAGS: business | accounting | Australia | international financial reporting standards (IFRS) | New Zealand | financial reporting | standards | regulation

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