New Determination G30
A determination issued today will allow financial institutions that adopt International Financial Reporting Standards to continue to use the same methods of calculating income and expenditure for most financial arrangements as under the previous rules. Fees, however, will follow the IFRS treatment. The determination will apply to debt securities, finance leases and hire purchase agreements of financial institutions that are in the business of lending money or providing finance under hire purchases or finance leases. The determination is intended to be a temporary measure to provide greater certainty while a legislative solution is being developed. For more information see Determination G30: "Debt securities, finance leases and hire purchase agreements denominated in New Zealand dollars".