XRB Board Update 7/2020

Targeted Review outcome released, new NZASB Board Chair appointed

This XRB Update provides you an overview of recent External Reporting Board activities and news, any new standards, as well as other matters of interest.

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Positive feedback from Targeted Review of the New Zealand Accounting Standards Framework

Feedback received confirms the Framework for developing accounting standards remains appropriate for New Zealand reporting entities.

The feedback we received highlighted strong support for the current framework and confirmed that the it is operating as originally intended—with no unintended consequences noted. Therefore, the XRB has concluded that no changes to the New Zealand Accounting Standards Framework (ASF) are required at this time.

The XRB also acknowledges the increased focus on environmental, social and governance accountability reporting, both in the private and public sectors. These non-financial reporting matters are being separately considered as part of XRB’s ongoing Extended External Reporting (EER) initiatives.

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Feedback Statement

Targeted Review Feedback Statement coverWe have produced a Feedback Statement . This outlines the main matters raised in the submissions we received, along with the main decisions made by the XRB Board in response.

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The XRB staff and Board appreciate the time and effort respondents have put into considering the Discussion Paper (DP) and the issues you raised. Your feedback has been useful in confirming that the NZ Accounting Standards Framework is actually meeting user needs and s operating as intended.

Useful background

In July 2019, the External Reporting Board (XRB) issued for public consultation the Discussion Paper Targeted Review of the New Zealand Accounting Standards Framework (the DP).

The New Zealand Accounting Standards Framework (the ASF) sets out the XRB’s strategy for developing accounting standards, which are then applied by those New Zealand entities with a statutory requirement to prepare financial statements in accordance with standards issued by the XRB.

The ASF had been effective for 4-5 years for many entities, and it was therefore timely for the XRB to “check-in” with stakeholders to receive feedback on whether the ASF was functioning as anticipated and was achieving its original objectives.

Accounting Standards Board Chair appointment

Carolyn Cordery

The External Reporting Board (XRB) is delighted to announce the appointment of a new Chair of the New Zealand Accounting Standards Board (NZASB). Carolyn Cordery will take up the position from early 2021.

Carolyn is well known in accounting standard circles, having previously played a key role in the original development of New Zealand’s current suite of financial reporting standards.

XRB Chief Executive, April Mackenzie, welcomes Carolyn’s appointment. “We are very pleased to have someone of Carolyn’s calibre and expertise to lead the NZASB,” she said.

“While Carolyn is known for her expertise and knowledge of the not-for-profit sector, Carolyn also has a broad range of experience across all fields of financial reporting and assurance,” she said.

Carolyn says she is looking forward to taking on the challenge of maintaining the quality of New Zealand accounting standards, while also ensuring they meet future user-needs in this continually evolving environment.

“I am excited to be appointed to this important role to help build and maintain the trust and confidence of external reporting in New Zealand – whether it is from the corporate, public or not-for-profit sectors,” she said.

Carolyn is currently Professor of Charity Accounting and Accountability at Aston Business School in Birmingham, UK.  She holds a position at the School of Accounting and Commercial law at Victoria University of Wellington, where she had also obtained her PhD and had worked since 2005. Carolyn was a NZASB Board member from 2011-2016.

Carolyn has undertaken commissioned research projects, published internationally, and is on the editorial board of several academic journals. She teaches risk management, financial reporting and audit. She is a Fellow of Chartered Accountants Australia and New Zealand and a Fellow of CPA Australia.

This XRB Update is intended to provide subscribers with a summary of the recent activities of the External Reporting Board (XRB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board does not guarantee, and accept no legal liability whatsoever arising from or connected to the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.