Public Benefit Entity (PBE) Conceptual Framework Update

We are consulting on proposed updates to the PBE Conceptual Framework.

The PBE Conceptual Framework is based on the Conceptual Framework of the International Public Sector Accounting Standards Board (IPSASB). It sets out the concepts underpinning the development of accounting standards for PBEs in the public and not-for-profit sectors.


About this consultation

The PBE Conceptual Framework is not a Standard. However, PBEs in Tiers 1, 2 and 3 may refer to it when preparing financial reports – for example, when determining how to account for a transaction not specifically covered by a Standard.

We are proposing to update the PBE Conceptual Framework in line with the IPSASB’s recent limited-scope updates to Chapters 3 and 5 of its Conceptual Framework, in the following areas:

  • Chapter 3 Qualitative Characteristics: Amendments to clarify the role of prudence in the context of representational faithfulness, and to update the guidance on materiality.
  • Chapter 5 Elements in General Purpose Financial Reports:
    • Amendments to the definition of an asset and a liability and the related guidance – including a revised definition of a liability that refers to ‘transfer of resources’, and amendments to the description of a ‘resource’ in the context of the definition of an asset; and
    • New guidance on the ‘unit of account’ and on binding arrangements that are equally unperformed. 

Read the Exposure Draft here.

Read the Consultation Document here.

The Exposure Draft sets out the proposed amendments, and the Consultation Document summarises the proposals and includes questions for respondents. 

How to provide feedback

Please send us your comments — both formal and informal– by using the form below or emailing us at

Comments must be submitted by 21 June 2024.

We intend on publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 2020 also applies.