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Welcome to the June edition of XRB Update

Our 2026/27 Statement of Performance Expectations sets out the XRB’s planned priorities and performance

Two important climate consultations coming soon

The XRB will be consulting soon on two climate-related matters.

The first is a consultation on a draft climate reporting roadmap for New Zealand. This draft roadmap proposes a strategic direction for climate reporting. It is designed to support the development of climate standards that are fit for purpose for New Zealand, and to enable New Zealand to maintain alignment as international climate reporting requirements and expectations evolve. The draft roadmap has been developed in response to what we heard from you last year about international alignment of climate reporting and will be open for a four-month consultation period.

The second is a consultation relating to targeted amendments to NZ CS 1 Climate-related Disclosures to internationally align requirements for the disclosure of scope 3 investment-related greenhouse gas (GHG) emissions. This is a shorter consultation, open until 29 July 2026.

Both will be available on the domestic consultations page of our website.

We thank you in advance for your engagement in these consultations. Your feedback is vitally important in shaping the future of climate reporting in New Zealand.

We’re progressing a review of our accounting standards framework

The XRB works in a fast-changing environment, shaped by evolving stakeholder expectations, legislative change, rapid shifts in technology, and a demand for clear, trusted decision-useful reporting. Our underpinning strategy is to ensure that our reporting frameworks and standards are aligned with international standards and function effectively in the New Zealand context.

We recognise the importance of capital flows and global trade to the New Zealand economy. This approach ensures the credibility of our standards, and the consistency, and comparability of financial and non-financial information across borders, fosters investor and user confidence and supports efficient capital markets.

Our sector-based, tiered accounting standards framework allows us to take a tailored approach to different sectors and sizes of entities to meet user needs and appropriately balance cost and benefit.

We are progressing a review of our accounting standards framework to assess whether New Zealand’s tiered, multi standard, sector-based framework remains fit for purpose, internationally aligned and locally relevant.

Our ongoing engagement with our stakeholders including directors, preparers and auditors have provided valuable insight into how the framework and standards are working in practice, particularly in relation to complexity, tiering and the use of exemptions. This feedback has helped to inform the work to date on the review. We look forward to sharing more of our thinking in the coming months, with the aim of publishing a discussion paper for feedback in 2027.

Going concern changes supports better assessment and reporting

To support implementation of the revised going concern auditing standard, we have also developed flowcharts that show the auditor’s decision-making process for going concern and how it links to the range of audit opinions and going concern statements in the revised auditor’s report. The revised auditing standard applies for periods beginning on or after 15 December 2026.

International standard-setting discussions are focused on how reporting and assurance frameworks should respond to trends and emerging issues  

Recent international forums gave us opportunities to collaborate and share New Zealand perspectives with our colleagues in other jurisdictions.  

In April, we attended the International Forum of Accounting Standard Setters and also joined the Jurisdictional Standard Setters meeting for assurance and ethics standards. These forums brought together standard setters from around the world to test ideas, debate trends and emerging issues and consider how reporting and assurance frameworks should evolve and respond. Discussions covered the growing use of technology in both reporting and audit, and the fast-moving nature of the changes, the future of corporate reporting, fraud and cyber risk, valuation uncertainty.

These discussions reinforced the importance of staying attuned to our changing context, flexible and responsive. They also confirmed that AI is already changing how information is prepared, analysed and evidenced and how assurance engagements are performed. Later this year, we expect to seek stakeholder views on proposed updates to auditing standards on risk response and audit evidence.

IASB Chair visit brought global reporting insights to New Zealand stakeholders

In May, we hosted several stakeholder events during International Accounting Standards Board (IASB) Chair Dr Andreas Barckow’s visit to New Zealand.

These events gave New Zealand stakeholders first-hand insights into international reporting developments and created space to discuss what they mean in our context. The discussions highlighted the importance of internationally aligned standards in supporting confidence, and comparability in information reported, and New Zealand’s access to global capital markets. They also reinforced the benefits of New Zealand stakeholder perspectives and challenges being shared with international standard-setters, which the XRB does through our joint membership with Australia on the IASB’s advisory body, the Accounting Standards Advisory Forum (ASAF).

It was a lively discussion with the need to prepare early being emphasised repeatedly, especially for comparatives, management-defined performance measures, key judgements and stakeholder communications. Although the standard focuses on presentation and disclosure, it is likely to change how financial performance is understood. If you missed this session, here is a recording. We also have supporting materials on our website.

We held a session Global standards, local realities, with the Institute of Directors, highlighting international and domestic developments for directors. The session focused on the rising expectations of boards, with the growing use of AI shaping these expectations, and what users of the reporting are looking for. Directors can expect ongoing scrutiny of going concern in this uncertain environment, and increasing expectations of closer alignment across an entity’s financial, climate and non-financial reporting. NZ IFRS 18 provides an opportunity to refresh financial statements by improving the structure and usefulness of financial statements. Directors play an important role in ensuring the overall reporting story is clear, coherent and credible.

We hosted a workshop with some of our international colleagues on mid-tier sustainability reporting

In May, we also hosted the Canadian Sustainability Standards Board, the Sustainability Standards Board of Japan and the UK Financial Reporting Council for a two-day workshop. We explored opportunities to work together on mid-tier sustainability reporting, including voluntary reporting by smaller listed entities.

We are interested in building a shared understanding of the suitability of existing international standards for mid-tier entities, the reporting challenges these entities face and the possible ways we could respond. We will look to understand more about the potential need for sustainability reporting focused on mid-tier entities over the coming year.

Consultations

Keep an eye out for our XRB Performance Survey – out now.

We really value your feedback