Why report?
Our standards ensure transparent and consistent external financial reporting and ultimately build greater trust and confidence with your stakeholders – whether they be your shareholders, investors, donors, funders, members, customers, or tax or rate payers.
Many New Zealand organisations such as businesses, not-for-profit organisations and public sector organisations, have a legal obligation to prepare and publish financial reports which apply XRB standards. These organisations may also be required to have an independent audit or review over those reports.
Certain organisations may also be required to report Climate-related disclosures using the XRB standards, and have them assured.
Essentially, the law states which types of entities must prepare and publish reports that apply XRB standards, and obtain assurance on them.
The following are examples of Acts which set out which types of organisations must prepare, obtain assurance, and publish financial reports.
- Charities Act 2005
- Companies Act 1993
- Crown Entities Act 2004
- Education and Training Act 2020
- Financial Markets Conduct Act 2013
- Friendly Societies and Credit Unions Act 1982
- Gambling Act 2003
- Incorporated Societies Act 2022
- Industrial and Provident Societies Act 1908
- Local Government Act 2002
- Limited Partnerships Act 2008
- Māori Trusts Boards Act 1955
- Partnership Law Act 2019
- Public Finance Act 1989
- Te Ture Whenua Māori Act 1993
- Unit Titles Act 2010.
The XRB standards themselves then state what and how organisations must report. These requirements are incorporated into the XRB's financial reporting strategy
Even if your organisation is not required by any law to follow our standards, you can still choose to apply them voluntarily.
For its external financial reporting, your organisation will have to apply a particular tier of accounting standards, depending on which sector it operates in.