The Reserve Bank of New Zealand (RBNZ) is seeking submissions on proposed changes to the insurance sector’s solvency standards.
In its consultation paper Insurance Solvency Standards and NZ IFRS 16 Leases, the RBNZ requests that licensed insurers provide additional information regarding right-of-use assets and lease liabilities. It aims to improve the RBNZ’s understanding of the current use of lease arrangements, the impact of the accounting changes, and the effect of the proposed changes to insurance solvency standards.
The paper also discusses the requirements of NZ IFRS 16, and the alternatives considered.
NZ IFRS 16 Leases is a new accounting standard for lease contracts. It will apply to financial reporting periods beginning on or after January 01, 2019, although earlier adoption is permitted.
Interested parties are invited to provide comments on the proposed changes, the questions set out in the consultation paper and on any other issues they believe should be taken into account. Submissions close August 24.