Public Benefit Entities – Service Performance Reporting

Tier 1 & 2
Accounting Standards

When the NZASB first issued PBE Standards in 2013, it signalled its intention to develop a financial reporting standard on service performance information for Tier 1 and Tier 2 public benefit entities.

Today, we are issuing PBE FRS 48 Service Performance Reporting.

“Service provision for community or social benefit is the primary objective of public benefit entities.” said NZASB Chair Kimberley Crook.

“Service performance information is an important part of the accountability of public benefit entities. We are very pleased today to issue our domestic standard on service performance reporting. This is the culmination of a lot of work, and we thank our constituents for their engagement and feedback along the way.”

The new standard has been developed for Tier 1 and Tier 2 public benefit entities.

Any changes to the service performance reporting requirements of Tier 3 and Tier 4 public benefit entities will be considered later.

PBE FRS 48 Service Performance Reporting

This standard establishes new requirements for the selection and presentation of service performance information. 

An entity must provide users with

  1. sufficient contextual information to understand why the entity exists, what it intends to achieve in broad terms over the medium to long term, and how it goes about this; and
  2. information about what the entity has done during the reporting period in working towards its broader aims and objectives.

In order to be suitable for a wide range of entities to be able to apply, the standard establishes high level requirements.

Because the presentation of service performance information in accordance with the standard can require judgement, the standard also requires disclosures about judgements made in applying the standard.

The standard is effective for annual financial reports covering periods beginning on or after 1 January 2021, with early application permitted.

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