This month, the ASB has issued Financial Reporting Standard (FRS) 28 'Corresponding Amounts'. The development of the FRS started in March 2005 when FRED 35 'Corresponding Amounts' was issued. Reflecting respondents' views the FRS adopts the proposals in FRED 35.

FRS 28 requires corresponding amounts to be shown for items in the primary financial statements and notes to the financial statements. Where corresponding amounts are not directly comparable with the amount to be shown in respect of the current financial year, they shall be adjusted and the basis for adjustment disclosed in a note to the financial statements.

The FRS permits a reporting entity not to show corresponding amounts for certain items in the notes to the financial statements that were previously exempted under company law. It also does not require corresponding amounts for the earliest period presented where financials statements for two or more consecutive periods are presented together.

The requirements of the FRS apply to financial statements that are intended to give a true and fair view except where an accounting standard or Urgent Issues Task Force Abstract permits or requires an alternative treatment.

The FRS is effective for financial statements relating to accounting periods which begin on or after 1 January 2005 and which end on or after 1 October 2005.

Reporting entities applying the Financial Reporting Standard for Smaller Entities (FRSSE) currently applicable are exempt from the FRS. Consistent with the objective of the FRS to maintain the existing legal requirements for corresponding amounts a consequential amendment has been made to the Financial Reporting Standard for Smaller Entities (effective January 2005).