News

NZ IFRS 18 – are you ready?

Attention all Tier 1 and Tier 2 for-profit entities – NZ IFRS 18 Presentation and Disclosure in Financial Statements is mandatory from 1 January 2027. Entities will likely need to update their systems, record-keeping and the financial statement preparation process by this date – we encourage you to start preparing now.

NZ IFRS 18 will replace NZ IAS 1 Presentation of Financial Statements and introduces several new requirements, including

• New categories and subtotals in the statement of profit or loss

• Disclosure requirements for management-defined performance measures

• Enhanced guidance on grouping (aggregation and disaggregation) of information

These new requirements aim to improve how information is communicated to users in financial statements, by enhancing comparability, helping entities provide the right level of detail, and increasing transparency and users’ understanding of how certain non-generally accepted accounting practice measures compare with the measures defined by NZ IFRS.

Sign up for new NZ IFRS 18 monthly updates

From next month, we will send out a monthly communication to help entities prepare for NZ IFRS 18. This will include information about the new requirements plus details of upcoming events such as deep dive webinars. Sign up here to receive the NZ IFRS 18 alerts.

Join our need-to-know update session on 8 April at 12:30pm

This hour-long webinar will include a high-level overview of the new NZ IFRS 18 requirements. Register to attend here.

Have your say on proposed reduced disclosure regime (RDR) concessions

We are seeking feedback on proposed NZ IFRS 18 RDR concessions for Tier 2 for-profit entities via an open consultation. Please provide your feedback by 29 May 2025.

Keep up to date via our website

To access NZ IFRS 18, and to catch up on new content, please visit our NZ IFRS 18 webpage.

Panel discussion on public sector performance reporting

Last month the XRB hosted a lively and insightful panel discussion on public sector performance reporting together with Victoria University of Wellington.

For those who were unable to attend, we have summarised key points of the discussion below and uploaded an audio recording.

Wendy Venter, Chief Executive of the XRB, discussed the current state of public sector performance reporting, and what can be improved, with panellists Ian Carruthers (Chair of the International Public Sector Accounting Standards Board), David Eng (Office of the Auditor General), Struan Little (The Treasury) and Sally Davenport (Victoria University of Wellington).

Key points from the discussion included:

• It is important for entities to consider user needs when reporting on service performance – thinking about who the reporting is for and why they need it, before deciding what to report.

• Service performance reporting in the public sector is complex, given the different aspects of public sector performance and the many different stakeholders of entities.

• Service performance reporting would benefit from the entity clearly articulating what the entity is aiming to achieve and consider the need for systems that support information-rich performance reporting that goes beyond listing quantitative outputs.

• It is important for entities to use their judgement, and their understanding of the subject matter and what this means to users, when applying the standard PBE FRS 48 Service Performance Reporting.

• There is a strong opportunity for New Zealand to learn from other countries' experience in terms of systems and practices that support their public sector performance reporting.

New standard on service performance information

The XRB has issued a new review engagement standard, NZ SRE 1. This sets out the objectives and requirements for an assurance practitioner engaged to review a performance report that includes service performance information. The standard is applicable for accounting periods beginning on or after 1 January 2026.

Watch our short overview video on summarising why the XRB developed this standard, the approach and key benefits.

Join us on 27 March to learn more at a deep dive session where we will walk you through the standard.  

IPSASB climate exposure draft 

The International Public Sector Accounting Standards Board (IPSASB) has issued its exposure draft (SRS ED) of the world’s first climate-related disclosure standard for governments around the world. Read more here.

We received written feedback and hosted a workshop to hear broader views on the SRS ED from New Zealand public sector entities. These views informed the XRB’s Sustainability Reporting Board (SRB) submission, which can be viewed here. Thank you to everyone who took the time to provide your feedback.

Transition planning guidance

Last December, we published a series of guides to support climate reporting entities (CREs) to approach transition planning. The final one, for staff, is now available, completing the series:

• Transition planning – Overview covers what climate transition planning is, and how it can help organisations transform deep uncertainties into an actionable long-term strategy.

• Transition planning– A guide for directors, which uses the four pillars framework of governance.

• Transition planning– A guide for executives, covers executives’ objectives and responsibilities over the transition planning process, and includes practical guidance on how to apply familiar tools to plan, lead and execute under high uncertainty.

• New Transition planning - Guidance for staff This guide is for staff involved in coordinating or leading the transition planning process in their organisation. It covers the thinking and related business processes to develop a transition plan, as well as the drafting of the transition plan itself.

While this series focuses on the underlying work, last year we also published an update to the transition planning part of our all-sector staff guidance, focusing on disclosure: Transition planning disclosure guidance

Events

• Deep Dive –Review of service performance information - 27 March

• Need to Know –Assurance update – 3 April 2025

• Need to Know –Accounting for-profit update – 8 April 2025

Current consultations

• RDR concessions– NZ IFRS 18 Presentation and Disclosure in Financial Statements closes 29 May 2025.