(Notice No. 63)
Notice is hereby given, pursuant to section 29 of the Financial Reporting Act 1993 (“the Act”), that the Accounting Standards Review Board has approved, as a financial reporting standard for the purposes of the Act, Amendments to New Zealand Equivalent to International Accounting Standard 39 Financial Instruments: Recognition and Measurement – The Fair Value Option (including all consequential amendments to NZ IFRS 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards and NZ IAS 32 Financial Instruments: Disclosure and Presentation, as set out in this standard (the “consequential amendments”)), which has been submitted to it by the Institute of Chartered Accountants of New Zealand.
Amendments to New Zealand Equivalent to International Accounting Standard 39 Financial Instruments: Recognition and Measurement – The Fair Value Option (together with the consequential amendments) is:
? to apply to all reporting entities and groups, the Crown and all departments, offices of Parliament and
Crown entities, and all local authorities (each of which
is defined in the Act) other than where expressly exempted by its terms, the terms of any other approved financial reporting standard or by law;
? to apply to annual accounting periods commencing on
or after 1 January 2007;
? to apply to annual accounting periods commencing on
or after 1 January 2006 when an entity complies, or
has complied, with New Zealand Equivalent to International Financial Reporting Standard 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards; and
? a Regulation for the purposes of the Regulations (Disallowance) Act 1989.
Early adoption of Amendments to New Zealand Equivalent to International Accounting Standard 39 Financial Instruments: Recognition and Measurement – The Fair Value Option (together with the consequential amendments) is permitted for annual accounting periods commencing
on or after 1 January 2005 but only where an entity complies, or has complied, with New Zealand Equivalent
to International Financial Reporting Standard 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards, and provided that where
an entity applies Amendments to New Zealand Equivalent to International Accounting Standard 39 Financial Instruments: Recognition and Measurement – The Fair Value Option during this earlier period the consequential amendments shall also be applied for that earlier period.
Copies of Amendments to New Zealand Equivalent to International Accounting Standard 39 Financial Instruments: Recognition and Measurement – The Fair Value Option (together with the consequential amendments) may be inspected free of charge at, and will be made available
for purchase from, the offices of the Institute of
Chartered Accountants of New Zealand, 40 Mercer Street (P.O. Box 110-342), Wellington, and 27-33 Ohinerau
Street (P.O. Box 3334), Auckland.
Dated this 1st day of August 2005.
WARWICK HUNT, Chairman, Accounting Standards Review Board.