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The ‘NZ’ in ‘NZ IFRS’: Public Benefit Entity Amendments
Author(s) -
Bradbury Michael E.,
Baskerville Rachel F.
Publication year - 2008
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2008.0023.x
Subject(s) - accounting , international financial reporting standards , business , public sector , profit (economics) , fair value , economics , economy , microeconomics
In 1992, New Zealand adopted a sector‐neutral approach to standard setting – where the difference in accounting treatment is driven by differences in the nature of transactions and not by ownership or the objectives of the reporting entity. This study reviews the impact of adaptations of International Financial Reporting Standards (IFRS) to ensure their successful application in a sector‐neural environment. A fundamental question of the move to IFRS is whether the public benefit entity amendments in NZ IFRS have contaminated the IFRS for profit‐orientated entities or diluted the available guidance for public benefit entities. This suggests that it is worthwhile for Australia and New Zealand to monitor and reconsider their sector‐neutral approach to adopting IFRS.