Notice is hereby given, pursuant to the Legislation Act 2019, that the New Zealand Accounting Standards Board of the External Reporting Board has issued Lack of Exchangeability (“Standard”).

Standard

Lack of Exchangeability

• applies to all Tiers 1 and 2 for-profit reporting entities and groups, other than where expressly exempted by its terms, the terms of any other approved accounting standard or bylaw;
• is secondary legislation for the purposes of the Legislation Act 2019; and
• is published on 2 November 2023 and takes effect on the 28th day after the date of its publication under the Legislation Act 2019 and commences to apply as set out below.

Commencement and application

The accounting periods in relation to which this amending Standard commences to apply are:

(a) for an early adopter, those accounting periods following and including, the early adoption accounting period.

(b) for any other reporting entity, those accounting periods following, and including, the first accounting period for the entity that begins on or after the mandatory date.

early adopter means a reporting entity that applies this amending Standard for an early adoption accounting period

early adoption accounting period means an accounting period of the early adopter:

(a) that begins before the mandatory date but has not ended or does not end before this amending Standard takes effect (and to avoid doubt, that period may have begun before this amending Standard takes effect); and

(b) for which the early adopter:

1. first applies this amending Standard in preparing its financial statements; and
2. discloses in its financial statements for that accounting period that this amending Standard has been applied for that period.

mandatory date means 1 January 2025.

Copies of this Standard may be inspected free of charge at the offices of the External Reporting Board (XRB), Level 6, 154 Featherston Street, Wellington. Copies are also available on the XRB’s website at www.xrb.govt.nz.

Dated this 2nd day of November 2023.

CAROLYN CORDERY, Chair, New Zealand Accounting Standards Board.