2025 saw us carry out extensive outreach on financial reporting changes including proposed new revenue and transfer expense accounting requirements for Tier 1 and Tier 2 public benefit entities - PBE IPSAS 47 and 48 and new financial statement presentation and disclosure requirements for all for-profit entities - NZ IFRS 18. Our efforts to engage and help entities understand these significant new requirements will continue in 2026.

We will continue to reach out to incorporated societies to help them understand the new financial reporting requirements that apply to them under the Incorporated Societies Act 2022.

Following the Government’s recent changes to the climate-related disclosures regime, we confirmed our decision to provide an additional two-year extension for scope 3 greenhouse gas emissions disclosure and assurance, and disclosure of anticipated financial impacts. We have started work on a climate reporting roadmap to ensure we are heading in the right direction and look forward to consulting on the draft roadmap in 2026.

Finally, as we close out the year, we have issued two revised auditing standards that enhance the auditor’s responsibilities for fraud and going concern, which are matters of important public interest. The revised standards reflect our strategic priority of ensuring the XRB’s standards are internationally aligned and locally relevant. Look out for guidance early in 2026 that will help preparers, governance and auditors get ready for these revisions. We wish you a safe and restorative holiday season and look forward to working with you next year.

Focus on emerging technologies

Understanding the opportunities and risks of emerging technologies, including AI, for external reporting and assurance will continue to be a strategic priority next year. We are planning more engagement and resources on the topic, with the aim of ensuring our standards and guidance keep pace with developments.

We recently co-hosted a roundtable discussion with the International Auditing and Assurance Standards Board (IAASB) on the use of emerging technologies in audits. Ours was one of eight global roundtables that the IAASB co-hosted to find out more about how auditors are using technology in their engagements, how they are striking a balance between innovation and safeguards, what challenges they are facing in applying quality management standards, the expectations of stakeholders and thoughts on the IAASB’s plan to develop guidance.

Watch an interview with IAASB’s chair, Tom Seidenstein, on the global roundtable series here.

Decisions following consultation:

Sustainability assurance, ethics and independence

We heard overwhelming support to align with the latest international sustainability assurance standards. We plan to issue the following standards in early 2026, to be applicable for periods beginning on or after 15 December 2026:

• International Standard on Sustainability Assurance (New Zealand) 5000, General Requirements for Sustainability Assurance Engagements

• International Ethics Standards for Sustainability Assurance (including International Independence Standards) (New Zealand)

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

Feedback sought a permanent solution for assurance engagements over greenhouse gas emissions disclosures for climate reporting entities. We plan to revoke the temporary standard NZ SAE 1, Assurance of Greenhouse Gas Disclosures for periods beginning on or after 15 December 2026, the applicable date of the international standards. We look forward to holding awareness raising sessions and developing guidance to support adoption and implementation of these standards during 2026.