Nz Financial Reporting Standards - Changing Regime

LEARNING OBJECTIVES

1. Understand the International Standards on Auditing (NZ) pre-condition requirements for accepting an audit engagement, with emphasis on the client selection of the correct reporting regime.
2. Review the applicable legislation that establishes a requirement to adopt General Purpose Financial Statements (ie GAAP compliant financial statements).  Note exclude consideration of Public Sector and Issuer entities as don’t have any of these as a client.  Legislation includes:

1. Companies Act 1993
2. Financial Reporting Act 1993 (some residual application if old balance dates are being audited)
3. Financial Reporting Act 2013
4. Charities Act 2005
5. Incorporated Societies Act 1908
6. Charitable Trusts Act 1957

1. Recap on the timing of the termination of Old GAAP as a reporting framework option.  Also the requirements for being entitled to use differential reporting, with emphasis on the size criteria.
2. Understand the new reporting framework established by the External Reporting Board (XRB).  Hint: excluding the Public Sector, there are 5 GAAP and 1 non-GAAP reporting options.
3. Understand the For-Profit entity criteria for selecting the correct reporting regime, with emphasis on:

1. Definition of large
2. Shareholder count

1. Understand the reporting regime options if the For-Profit entity is entitled to prepare special purpose financial statements.
2. Understand the Not-For-Profit entity (who is a Registered Charity) criteria for selecting the correct reporting regime, with emphasis on :

1. Size measurement basis
2. Tier thresholds
3. Reporting options for each Tier

1. Understand the Not-For-Profit entity (who is NOT a Registered Charity) criteria for selecting the correct reporting regime
2. Understand other factors that might impact the selection of a reporting regime (eg founding document).
3. Understand the implications on audit opinions arising from the different reporting frameworks.

PRE-TRAINING PREPARATION REQUIRED BY ALL ATTENDEES.

Please print and bring with you to the training session.  IF YOU DON’T BRING THIS WITH YOU THEN YOU DON’T GET A CHAIR TO SIT ON FOR THE TRAINING SESSION

1. Visit the External Reporting Board Website and print a screen shot of the decision flowcharts for:

1. For-Profit entities reporting after 1/12/12. https://xrb.govt.nz/Site/Accounting_Standards/Current_Standards/Standards_for_For-Profit_Entities/default.aspx
2. Not-For-Profit entities reporting after 1/4/15 https://xrb.govt.nz/Site/Accounting_Standards/Current_Standards/Standards_for_Not-For_Profit_PBEs/default.aspx

1. Visit the NZICA website and print the summary of which entities have a statutory requirement to:

1. Prepare financial statements;
2. Have their financial statements audited, and
3. File their financial statements with the Companies Office.

http://www.nzica.com/Technical/Financial-reporting/Financial-Reporting-Act.aspx

Please also have a read of the summary, and highlight that categories for which you have clients.  We can discuss these as a group and make sure we have a common understanding of these.

PRE-TRAINING PREPARATION REQUIRED BY INDIVIDUALS.

In order to present on this at the training session (so this is also the course outline)