Not-for-Profit Update #6

Changing your reporting tier, Review of Tier 3 &$ reporting standards...


In this update for registered charities and other not-for-profit entities we highlight:

  • Our recently published frequently asked questions publication about Tier 4 and Tier 3 entities changing reporting tiers; and
  • The XRB’s post-implementation review of the Tier 3 and Tier 4 reporting standards1.

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FAQs for Tier 3 and Tier 4 Not-for-Profit entities – Changing your Tier

 Changing your Reporting Tier cover

Applies to:


As we head into the holiday season, many of you will have financial reporting obligations to attend to.

Those with financial years that ended on 30 June are required to file your annual performance report by 31 December 2020. Those of you with financial years ending 31 December will be starting to prepare your annual performance reports now.

2020 has been a difficult year for everyone, including the not-for-profit sector which has responded to the increased demand for its services while managing pressure on ongoing funding. During this time, the operating expenditure for some not‑for‑profit entities has substantially increased and for others it may have decreased.

This raises questions about when and how a not‑for‑profit entity moves between different reporting tiers when its size changes.

To help Tier 3 and Tier 4 not-for-profit entities to understand the requirements for changing their reporting tier, these FAQs explain:

  • When you are required to change reporting tiers;
  • When you can choose to change reporting tiers; and
  • How to change from Tier 4 to Tier 3 reporting requirements.

You can find the full FAQs on our website.

Have a look

Do you have suggestions for any further FAQs you want answers for in the future? You can let us know your ideas via our website.

Contact us

Tier 3 and Tier 4 Reporting Standards Review

 NZASB logo

Applies to:

Not-for-profitPublic Sector

 SFR PIR cover

 SFR PIR One pager covers

In September, the NZASB commenced a post-implementation review of the Tier 3 and Tier 4 standards, guidance and templates. Your feedback is important to ensure these simple format reporting standards remain for-for-purpose for smaller charities and other not-for-profit entities.

The NZASB needs your feedback to help us understand what is working well when applying the current standards and what is not working so well. We are keen to receive feedback from those preparing the annual performance reports and those using the annual performance reporting including officers of charities and funding organisations. If you haven’t given your feedback yet, now is your opportunity!

There are three ways to provide your feedback. You can:

Submissions close on 31 March 2021.

More information

There is more information on the review, including links to the full request for information, as well as the current standards, guidance by clicking the link below.

 [1] This review also covers the versions of the Tier 3 and Tier 4 Standards for public sector entities.