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EZ 69: IFRS financial reporting method: interest-free and low-interest loans
or “Accounting for interest-free and low-interest loans using IFRS reporting”
You could also call this:

“Rules for businesses using IFRS reporting when equity or income recognition changes”

If you use a special way of financial reporting called IFRS, this law applies to you in some cases. It’s about how you handle money matters in your business.

You need to follow this rule if two things happen:

Firstly, you have to put some money into what’s called ‘equity’ or ‘other comprehensive income’ for the 2015-16 tax year because of a change in the IFRS rules.

Secondly, you didn’t have to do this for the 2014-15 tax year, even though the new rule says you should have.

If both these things are true for you, then the law says you’re changing how you spread your income. This change happens in the 2015-16 tax year.

When you make this change, you need to follow some other rules too. These rules are found in section EW 26(3) and (4) and EW 27. However, you don’t need to follow the rule in section EW 26(6).

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Next up: EZ 70: Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition

or “How to handle insurance payouts for Canterbury earthquake-damaged property”
Next

Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 69BIFRS financial reporting method: equity or other comprehensive income

  1. This section applies when—

  2. section EW 15D(2)(b) (IFRS financial reporting method) modifies an IFRS rule so that the person must allocate an amount of equity or other comprehensive income for a financial arrangement to the 2015–16 income year for tax purposes; and
    1. the person does not allocate, for the financial arrangement, an amount of equity or other comprehensive income to the 2014–15 income year that the person would be required to allocate if the requirement referred to in paragraph (a) applied for the 2014–15 income year.

      1. The change from the non-allocation treatment described in subsection (1)(b) to the allocation treatment described in subsection (1)(a) is treated as a change of spreading method for the 2015–16 income year under section EW 26(2) (Change of spreading method). Sections EW 26(3) and (4) and EW 27 (Spreading method adjustment formula) apply accordingly, but section EW 26(6) does not apply.

      Notes
      • Section EZ 69B: inserted (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 158(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).