Proposed new revenue and transfer expense accounting requirements for PBEs

Introduction to EDs PBE IPSAS 47 & 48

ED PBE IPSAS 47 Revenue

ED PBE IPSAS 48 Transfer Expenses

We have issued exposure drafts (EDs) for two new PBE Standards – PBE IPSAS 47 Revenue and PBE IPSAS 48 Transfer Expenses. These proposed standards aim to provide clearer guidance for revenue and transfer expense accounting and improve the consistency, comparability and transparency of financial reporting for public benefit entities.

Illustration related to PBE IPSAS 47 Revenue

Consultations closed on 1 December 2025

Submissions received:

Webcast with Ian Carruthers, IPSASB Chair

ED PBE IPSAS 47 and ED PBE IPSAS 48 are based on IPSAS 47 Revenue and IPSAS 48 Transfer Expenses, issued by the International Public Sector Accounting Standards Board (IPSASB) in 2023. We have modified the IPSAS Standards to ensure they are fit for purpose in the New Zealand context.

 Watch our interview with Ian Carruthers, Chair of the IPSASB, where he shares his insights and perspectives on the IPSASB’s development of IPSAS 47 and IPSAS 48 and key aspects of these new standards. 

A consistent foundation – the binding arrangement principle

At the heart of ED PBE IPSAS 47 and ED PBE IPSAS 48 is the concept of a binding arrangement, defined as follows:

A binding arrangement is an arrangement that confers both rights and obligations, enforceable through legal or equivalent means, on the parties to the arrangement.

The presence of this fundamental principle in both EDs ensures consistent recognition principles for both revenue and transfer expenses. However, determining whether a binding arrangement exists is a key judgement, as it affects how revenue and transfer expense transactions are recognised, measured, presented and disclosed in the financial statements. 

 For a high-level overview of this fundamental principle, watch our short webcast.

Access the Exposure Drafts

You can access each Exposure Draft, along with consultation documents and educational resources, on our dedicated pages:

Events

  • Need to Know - Accounting update for Tier 1 and Tier 2 public sector entities. You can view the recording here and download the event slides here.
  • Need to Know - Accounting update for Tier 1 and Tier 2 not-for-profit entities. You can view the recording here and download the event slides here.
Consultations