MYOB AE/AO release notes – 5.4.54/2025.0 (New Zealand)
Release date – March 2025
This release includes changes to Statutory reporter in Client Accounting.
Statutory reporter changes
Threshold for Not-for-profit entities increased from $2,000,000 to $5,000,000
The opening paragraph of the Statement of Accounting Policies, when reporting under Not-for-profit Tier 3 reporting basis has been changed to increase the threshold for Tier 3 from $2,000,000 to $5,000,000.
Note: If you’ve edited the Basis of Preparation paragraph for the practice or for an individual client, then this change will not be effective unless the paragraph is restored to the default content.New reporting standard for Not-for-profit entities
The new standard for Not-for-profit entities is called Reporting Requirements for Tier 3 Not for Profit Entities (Tier 3 (NFP) Standard). This is now the name referred to in the Statement of Accounting Policies.
Note: If you’ve edited the Basis of Preparation paragraph for the practice or for an individual client, then this change will not be effective unless the paragraph is restored to the default content.Statement of service performance comply with the new Not-for-profit requirements
The main components of the Statement of service performance have been renamed to comply with the new Not-for-profit requirements:We’ve renamed Entity’s Outcomes to Description of the medium to long term objectives.
We’ve renamed Outcomes and Output measures to Description of key activities.
Note: the Statement Service performance uses the name of each sub-report as the heading for the corresponding section, if these sub-reports have been renamed manually, then the changing name in the master templates will not be effective.
Note: To automatically transfer the newly renamed sub-report names for sections in the Statement of Service Performance to individual clients, select Reset reports. Remember that clicking Reset reports will reset all customisation in the report list, so make sure you know the changes before clicking.
Update Entity Information to comply with new Tier 3 Not-for-profit standards
The Entity Information has been updated to ensure compliance with the new Tier 3 Not-for-Profit (NFP) standards.
Changes are:The description of the Business address is now editable so that it can be changed to suit the particular entity (for example, Management address).
A new section has been added for Governance, as this is specially required by the standards
A new section has been added for the names of any entities controlled by the entity for financial reporting purposes, as this is specifically required by the standard.
Note: You need to edit the paragraphs in the Entity Information on a client by client basis, and any paragraphs not required can be excluded by clearing them in the report list.
Additional accounting policy to handle when investments are revalued to market value
We’ve made changes so that the Investments accounting policy will be different depending on whether investments are valued at cost or market value (previously it only catered for at cost).
We’ve added a new Non-Transaction Data folder for the Statement of Accounting Policies - investments, so you can choose between at cost (the default) or market value and also whether gains/losses on revaluation are recorded as income or directly to an asset revaluation reserve.There are 3 alternatives for investment accounting policy:
At cost (this is the default and matches the previous state): Investments include equity securities (i.e. shares) of listed and unlisted entities. The ((company/partnership/trust/business/entity)) recognises and measures these investments at cost less any accumulated impairment losses.
At market value with gains/losses put to Profit or loss: Investments include equity securities (i.e. shares) of listed and unlisted entities. The ((company/partnership/trust/business/entity)) measures these investments at market value. Gains or losses on revaluation are included in the ((statement of profit or loss/statement of financial performance)).
At market value with gains/losses put to a reserve: Investments include equity securities (i.e. shares) of listed and unlisted entities. The ((company/partnership/trust/business/entity)) measures these investments at market value. Gains or loss on revaluation are recorded as part of ((equity / accumulated funds - lowercase)) as a reserve.
Note that the Not-for-profit (NFP) standards require (at para 151(b)) some disclosures regarding financial assets that are recorded at current market value. The existing Investments note can fulfil these requirements as long as a separate account is used for each class of investment.
This change applies to all entities not just Not for profit.
Additional notes to Not-for-profit (NFP) standards additional disclosures
We’ve added a new paragraph to the Reserves note.
The Reserves note will be printed for any entities where there are non-zero reserves, and the new paragraph will be included for not-for-profit entities. This enables information to be entered in compliance with the new Tier 3 Not-for-profit (NFP) standards, which require information to be provided that enables users of its financial statements to evaluate the entity’s objectives, policies, and processes for managing its reserves.Change in accounting policy for dealing with donations and grants for new Tier 3 Not-for-profit (NFP) standards include a change in accounting policy
We've updated the default wording of the accounting policy for revenue from Donations, Grant and Bequests to reflect changes introduced in the new Tier 3 not-for-profit (NFP) standards.
Previously deferral of income was only allowed if the donation or grant was received with specific Use or return conditions. The new policy reflects that revenue may be deferred if there are appropriate documented expectations over use.Default revenue categories for new Tier 3 Not-for-profit (NFP) standards
We’ve expanded and renamed the Not-for-profit revenue account groups comply with the default categories required by the Tier 3 Not-for-profit (NFP) standards. This may require some manual remapping of accounts to ensure they are in the appropriate category.
Note: We still show separate account groups for Revenue from commercial activities and revenue from interest, dividends and other investment income. The Tier 3 not-for-profit (NFP) standards have these combined into a single category. We are unable to combine these because deleting an account group would undo the mapping of existing reports, and the combined description exceeds the maximum length of an account group name.Default expense categories for new Tier 3 Not-for-profit (NFP) standards
We’ve expanded and renamed the Not-for-profit expense account groups to comply with the default categories required by the Tier 3 Not-for-profit (NFP) standards. This may require some manual remapping of accounts to ensure they are in the appropriate category.