Air New Zealand Limited – Annual report – 30 June 2021
Industry: airline
Significant accounting policies (extract)
In April 2021, the International Financial Reporting Interpretations Committee (“IFRIC”) issued an agenda decision on Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38). This Interpretation clarifies the accounting treatment in respect of costs of configuring or customising a supplier’s application software in a Software as a Service (“SaaS”) arrangement. Whilst such costs may be able to continue to be capitalised in limited circumstances, in many cases the costs will now need to be recognised as an operating expense. Interpretations issued by IFRIC are required to be implemented within a reasonable timeframe from the date of their issuance. The Group has commenced a project to identify any such costs, but is not yet able to quantify the impact. It is expected that the Group will first apply the Interpretation, retrospectively, in the interim financial statements for the six months ending 31 December 2021.
