Update on changes to the statutory financial reporting framework
The Minister of Commerce has approved the External Reporting Board’s (XRB) proposals for the New Zealand Accounting Standards Framework (the Framework). While the Framework is largely consistent with previous consultation papers, there were some changes made as a result of submissions received by the XRB.
The Framework is a two sector, multi-tiered Framework. This approach has been adopted in order to meet the differing information needs of each sector’s users of financial statements. The for-profit entity framework is based on International Financial Reporting Standards (IFRS), whereas the framework for public benefit entities (PBEs) is based on International Public Sector Accounting Standards (IPSAS). The PBE accounting standards will include guidance specific to PBEs in the public sector and not-for-profit entities.
- Implications for not-for-profit entities
- Implications for for-profit entities
- Implications for public sector entities.
The Accounting Alert – May 2012 gives an overview of this topic.