Hopefully the answer is yes, but the reality is that some may not know that there are changes that need to be implemented.

So, let’s start with the basics.

When did the Standard change?

GRAP 104 on Financial Instruments was originally issued in 2009. The Standard was revised in 2019 to align it with IFRS 9 on Financial Instruments and the amendments to IFRS 7 on Financial Instruments: Disclosures.

What changed?

The most significant changes relate to the classification and measurement of financial assets, and the impairment model applied to financial assets and some financial liabilities. The changes fundamentally change how financial assets are measured and disclosed in the financial statements.

Changes have also been made to the accounting for financial guarantee contracts and loan commitments, i.e. where an entity commits to provide financing to another on below market terms.

When are the changes effective?

The changes are effective for financial years commencing on or after 1 April 2015.

What resources are available to support implementation?

The ASB established a “reference group” which will be used to discuss potential application and implementation issues  with preparers, auditors and financial instrument specialists  to identify areas where guidance or support may be required. The work of the group could for example result in new FAQs, new or revised Fact Sheets (see below), communication in the ASB Newsletter, social media, etc. and/or guidance issued by the Office of the Accountant-General.

The Secretariat of the ASB issued Fact Sheets on key issues related to identifying and accounting for financial instruments.  These can be accessed on our website by following this  link.