Notice Type
General Section
Notice Title

Notice (No. 33) of Approval of an Amendment to Approved Financial Reporting Standard No. 3

Notice is hereby given, pursuant to section 29 of the Financial Reporting Act 1993 ("the Act"), that the Accounting Standards Review Board has approved, for the purposes of the Act, an amendment to FRS-3 - Accounting for Property, Plant and Equipment which has been submitted to it by the Institute of Chartered Accountants of New Zealand.
The amendment alters the transitional provisions of FRS-3 by making capitalisation of borrowing costs optional until FRS-3 is superseded by the New Zealand equivalent
of IAS 16 Property, Plant and Equipment and IAS 32 Borrowing Costs.
Paragraph 12.12 of FRS-3 is amended to read:
"An entity is not required to comply with the requirement to capitalise borrowing costs (as specified in paragraphs 5.24 to 5.37 of the Standard) until FRS-3 is superseded by the New Zealand equivalent of IAS 16 Property, Plant and Equipment and IAS 32 Borrowing Costs.
The treatment of borrowing costs adopted by such an entity must however be applied consistently to all items of property, plant and equipment."
The approved amendment:
? is to apply to accounting periods ending on or after the date of notification in the New Zealand Gazette; and
? is a Regulation for the purposes of the Regulations (Disallowance) Act 1989.
Copies of FRS-3 as amended may be inspected free of charge at, or purchased from, the offices of the Institute
of Chartered Accountants of New Zealand, 40 Mercer
Street (P.O. Box 11-342), Wellington, and 27-33 Ohinerau Street (P.O. Box 3334), Auckland.
Dated this 16th day of June 2003.
ELIZABETH M. HICKEY, Chairman, Accounting Standards Review Board.