Update on changes to the statutory financial reporting framework
Changes to New Zealand’s financial reporting framework are being made from two angles:
- the Government has made changes to legislation which specifies which entities are required to prepare financial statements in accordance with generally accepted accounting practice (GAAP), and whether such financial statements need to be audited or filed, and
- the External Reporting Board (XRB) is determining which standards apply for entities required to prepare financial statements in accordance with GAAP.
The XRB is issuing standards across three sectors - for-profit entities, public benefit entities in the public sector, and other public benefit entities (referred to as ‘not-for-profit’ entities), with up to four different tiers for reporting within each sector. The XRB has five project streams to finalise the accounting standards framework, with four projects now complete.
Updates on the status of the project are included in the following documents:
December 2013 Accounting Alert - Staying on top of developments
Financial Reporting Act 2013 enacted providing clarity on the financial reporting obligations of New Zealand entities.
This document answers some frequently asked questions for for-profit companies based on the accounting standards framework now finalised by the XRB, and recent comments from the Commerce Committee proposing changes to the Financial Reporting Bill.
This accounting alert outlines the exposure drafts issued for the simple format reporting tiers that capture public benefit entities with less than $2m expenses.
This accounting alert outlines the finalised standards for ‘for-profit’ entities.
This accounting alert summarises the proposed financial reporting requirements by entity type, bringing together the proposals included in the Financial Reporting Bill with the proposals of the XRB on which financial reporting standards would apply.
This accounting alert provides an update on the proposed changes to New Zealand’s Accounting Standards Framework.