XRB Update

Welcome to the XRB Update, the XRB’s newsletter that highlights some of our news and current work, and the ways you can get involved and have your say. The XRB Update complements our technical Alerts - sign up here.

Introduction

Welcome to the first edition of the XRB Update, our refreshed newsletter.

Since joining the XRB at the start of this year, I’ve welcomed the opportunity to work with the Board on our new, recently published 2025–2030 Statement of Intent. Our purpose of Promoting trust and confidence, transparency and accountability through high-quality external reporting and assurance underpins everything we do. The implications of rapid technology change are front of mind for us, as they are for standard setters around the world.

I look forward to discussing our strategic priorities and plans with our many stakeholders in coming months.

We have a few consultations currently underway. We’ve profiled two of them below - on service performance reporting for tier 1 and 2 not-for-profit entities, and alignment with international standards for sustainability assurance.

Please come along to one of many events we are hosting on these and other topics over the coming weeks and months.

In other news, we’ve farewelled and welcomed new members on two of our three technical boards. Our technical boards support the XRB Board bringing highly valued subject matter expertise and experience to our standard-setting. We are also grateful to the various technical reference groups that support much of our work.

We look forward to hearing from you and keeping you informed.

Wendy Venter

Chief Executive

Technical board membership changes

The XRB Board is supported by three technical boards - the NZ Accounting Standards Board (NZASB), the NZ Auditing and Assurance Standards Board (NZAuASB) and the Sustainability Reporting Board (SRB). The boards play an important role, bringing relevant expertise and experience to our standard-setting governance.

Over recent weeks we have celebrated the contributions of retiring members and welcomed new members to the NZASB and NZAuASB.

NZASB – We said farewell to Francis Caetano and Warwick White, who provided important public sector perspectives and experience to the board. We thank them for their service and contribution to the work of the NZASB. We welcomed Nicky Haslam who started on 1 August. Nicky brings significant public and private sector experience and accounting expertise to the board.
NZAuASB: David Hay stepped down in June after six years, during which time the board benefitted greatly from his academic research expertise. The chair of the NZAuASB, Marje Russ, finished her term on 30 June, after nine years as a member, with the last three as chair. Marje’s expertise was instrumental in guiding the NZAuASB in non-financial assurance, and we thank her for the important contribution she has made to our work. We are currently recruiting to replace Marje and hope to make announcements soon. Todd Beardsworth joined in January this year bringing public sector audit, accounting and standard-setting experience. Darby Healey joined in June and brings deep experience and expertise in audit and assurance.

Nicky Haslam

Todd Beardsworth

Darby Healey

Have your say on service performance reporting

To ensure service performance reporting standards remain practical and relevant, we have released a consultation paper on service performance reporting and assurance for Tier 1 and 2 not-for-profit entities. We are seeking feedback on challenges and potential improvements—submissions close on 29 August 2025.

We held a series of stakeholder workshops last year to identify key issues with applying PBE FRS 48 Service Performance Reporting. We now want to confirm these insights and test our proposed solutions. We are seeking input from not-for-profit entities, assurance practitioners and users of service performance information to shape future improvements. Please share your views via email or the online feedback form.

New standard issued for audits of less complex entities

The XRB has issued an auditing standard (ISA (NZ) for LCE) that is available for use by auditors of less complex entities (which may include, for example, clubs, societies, schools, early childhood centres and charities). The release marks a historic milestone in supporting high-quality audits with requirements that are fit for purpose, proportionate and tailored to auditing less complex entities in New Zealand, following many years of consultation and engagement. Built on the foundation of international and New Zealand auditing standards, audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance.

International alignment of climate reporting – what we heard

On 30 April 2025, we issued a request for information (RFI) on the international alignment of climate reporting. The consultation closed on 13 June 2025. The purpose of the RFI was to request information about the value of international alignment to climate reporting entities (CREs) and primary users, and to understand exactly what type of international alignment is most desirable and why. Thank you to everyone who provided feedback. In total we received 84 submissions from a wide range of stakeholders including 40 CREs.

The headline feedback on the RFI was:

International alignment is important: Many submitters wanted Aotearoa New Zealand Climate Standards (NZ CS) to be aligned with international frameworks, particularly IFRS S2 Climate-related Disclosures and AASB S2 Climate-related Disclosures. Alignment or adoption is seen as crucial for improving comparability, reducing duplication, streamlining reporting processes, meeting investor expectations and improving market access. Some submitters proposed adopting New Zealand equivalents of IFRS S2 or AASB S2.
The need for stability and a phased approach to change: Many submitters expressed concerns about the premature adoption of new standards. They emphasised the need for stability and a phased approach to avoid frequent disruptions and increased compliance burdens. There were also warnings that premature changes could divert resources from meaningful climate action towards compliance. It was also stated that targeted amendments or a phased approach would allow entities to build capacity over time and avoid significant disruptions.
Support for mutual [or unilateral] recognition: There was strong support for some form of mutual recognition of climate standards, climate reports or both, particularly between New Zealand and Australia, or unilateral recognition by New Zealand as an alternative. This was expected to reduce compliance burdens and enhance efficiency.

You can read the full feedback report here.

Consultation on alignment with international standards for sustainability assurance engagements

New international standards for sustainability assurance engagements, ethics (including independence standards) and the use of external experts are being adopted, or consulted on, in other jurisdictions, including Australia.

We have issued a consultation document to hear your views on whether the XRB should make the new international standards available for use by assurance practitioners in New Zealand, and, if so, what changes may be appropriate for our local context. The consultation will enable us to receive feedback to inform decisions on next steps. Consultation closes on 10 October 2025.

Current consultations

Reporting and assurance of service performance information – Tier 1 and 2 not-for-profit entities
Comments to XRB by 29 August

2025 Amendments to XRB A1 Application of the Accounting Standards Framework
Comments to XRB by 29 August

Exploration for and Evaluation of Mineral Resources & Stripping costs in the Production Phase of a Surface Mine
Comments to XRB by 30 September

Alignment with international standards – Sustainability assurance, ethics and independence and using the work of an external expert
Comments to XRB by 10 October

Request for Information – Post-Implementation Review of IFRS 16
Comments to XRB by 15 September, Comments to IASB by 15 October

Proposed new revenue and transfer expense accounting requirements for PBEs
Comments to XRB on both by 1 December 2025
- Proposed accounting standard for revenue – ED PBE IPSAS 47 Revenue
- Proposed accounting standard for transfer expenses – ED PBE IPSAS 48 TransferExpenses

Events

We are hosting engagements on the following topics, click to find out more and register.

NZ IFRS 18 Presentation and Disclosure in Financial Statements

Reporting and assurance of service performance information – Tier 1 and 2 not-for-profit entities

ISSA (NZ) 5000 - General Requirements for Sustainability Assurance Engagements

Financial reporting requirements for incorporated societies

IESSA (NZ) - International Ethics Standards for Sustainability Assurance

Revisions to the Code Addressing Using the Work of an External Expert

ISA (NZ) for LCE - International Standard on Auditing (New Zealand) for Audits of Financial Statements of Less Complex Entities

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