• CAANZ optional special purpose financial reporting framework updated

CAANZ optional special purpose financial reporting framework updated

Following the completion of a post-implementation review), Chartered Accountants Australia and New Zealand ("CAANZ") has issued an updated and clarified version of the New Zealand optional Special Purpose Financial Reporting Framework for use by For-Profit Entities (“the Framework”). The updated Framework is available for use immediately.

In summary, the Framework has been updated such that:

  • Holding gains/losses in the value of biological assets can now be recognised either through profit or loss or directly in equity
  • The tax reconciliation format is no longer prescribed, so preparers can use their preferred method
  • Goodwill can now be written-off over ten years instead of being subject to an impairment test.

The Framework has also been clarified to:

  • Indicate that the Framework has been designed for for-profit entities and guidance has been provided to not-for-profit entities as to where they can find a more appropriate framework to use
  • Provide more guidance on how the “step up” option into NZ IFRS should be applied when this option is selected
  • Provide more guidance in accounting for interests in other entities.

CAANZ has also issued updated versions of the three sets of illustrative financial reports (services, products and agriculture) as a result of the above changes.

You can access the updated Framework and associated illustrative financial reports on the CAANZ website here.

For more on the above, please contact your local BDO representative.