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Public sector agencies were mandated to leverage new Government procurement rules from 1 October 2019.

This edition of Business Advisors outlines the early warning signs of insolvency and explores the impact of COVID-19 including financial reporting, tax issues and the global impact on the charity sector. Download your issue for these stories and more.

Uncertainty is something all businesses will grapple with today and into the future now that COVID-19 has changed the rules of the game.

It has been six months since the first case of COVID-19 was reported in New Zealand, and it seems that the country could continue to move in and out of various alert levels for the foreseeable future. The ongoing uncertainty will leave very few businesses unaffected by this brutal black swan. Some will suffer severe consequences, some will benefit, and for others, it will be business as usual.

New Zealand businesses are already feeling the ripples from the spread of Coronavirus – is your organisation braced for impact?

Inland Revenue has been reviewing tax rules applicable to charitable and donee organisations (charitable entities to which donations are eligible for a 33% tax rebate).

International Valuation Standards (IVS) 2019 have been updated and include a new chapter, 'IVS 220 Non-Financial Liabilities' as part of the intangible asset standards. Non-financial liabilities require a non-cash performance obligation to provide goods or services, including deferred revenue obligations, warranties, environmental liabilities and loyalty program liabilities. IVS 2019 is available to IVSC subscribers here .

In October 2018, the IASB issued ‘Definition of a Business’ making amendments to IFRS 3 ‘Business Combinations’. The amendments are a response to feedback received from the post-implementation review of IFRS 3 (‘the Standard’). They clarify the definition of a business, with the aim of helping entities to determine whether a transaction should be accounted for as an asset acquisition or a business combination.

From 1 October 2019, public sector agencies will leverage procurement to achieve economic, cultural, environmental and social outcomes.

The Government’s 4th edition of its procurement rules sets out the standards of best practice and expectations for how procurement will be leveraged to achieve broader outcomes. The procurement principles remain the same, but there’s are a few extra rules, a new Supplier Code of Conduct, some outdated rules have been removed and ‘public value’ has been signposted as the new overarching objective.

Are you ready for IFRS 16? This series of insights will help you prepare.

The Ministry of Business, Innovation and Employment (MBIE)recently released a paper for public consultation which includes various options for improving the conduct of financial institutions in New Zealand. The key focus of the paper is to ensure that conduct and culture in the financial sector is delivering good outcomes for all customers. Those wanting to make a submission will need to act quickly as submissions close on 7 June 2019.

Some areas of accounting have what could be described as geography issues; you’ve got a map of an area, but there might be two versions showing slightly different boundaries. This is currently the case for onerous contracts, however, the standards for these types of contracts are currently being updated to improve consistency and replace the variations in accounting practices that currently exist.

Earn-outs are a common feature of M&A transactions and when used properly, can provide the parties with an additional opportunity post-deal to true-up and validate the headline price.

The requirements of Public Benefit Entities International Public Sector Accounting Standards (PBE IPSAS) for Not-for-Profit reporting entities are continuing to change. Navigating the Changes to PBE IPSAS for Not-for-Profits gives chief financial officers, and audit and risk committee members a high-level awareness of these recent changes to PBE IPSAS. It covers both brand new standards, and changes that have been made to existing ones.

Every year, the requirements of New Zealand Equivalents to International Financial Reporting Standards (IFRS) change. New standards, interpretations and amendments are published that will affect companies’ future financial reporting. Our publication, Navigating the Changes to New Zealand Equivalents toInternational Reporting Standards, is designed to give chief financial officers, and audit and risk committee members a high-level awareness of these recent changes to NZ IFRS. It covers both new standards and interpretations that have been issued, and amendments made to existing ones.