Our research
Our research activity is based on one of our key areas of focus in our Statement of Intent – Better understanding of user needs.
We plan to leverage existing research, both in New Zealand and globally, on meeting evolving user needs and, where necessary, will commission research ourselves.
Our current and previous research reports are set out below
Effectiveness evaluation of the climate-related disclosure framework
The XRB has published an independent evaluation of New Zealand's climate-related disclosure (CRD) framework, undertaken by the University of Otago. The evaluation began in April 2023 to establish a baseline for understanding the framework's effectiveness and provide evidence on its early impacts.
Initial evidence shows that the CRD framework is improving business decision making, disclosure quality and investor practices, and reshaping governance and internal processes. However, substantial hurdles remain in capability building, data quality, methodological consistency, and the translation of disclosed information into meaningful financial and strategic decisions.
The XRB commissioned the research to obtain early evidence of the effectiveness of a new reporting regime. Understanding whether a reporting regime is delivering its intended outcomes is an important part of the standard setters’ role and includes understanding how reporting standards operate within the wider system.
The findings will help to inform the XRB’s work. For example, the evaluation finds that climate reporting entities face significant challenges in meeting disclosure requirements, including capability gaps, methodological uncertainty, and data limitations. The XRB is working through the report’s insights to guide our standard setting and implementation priorities, including informing our work on the draft climate reporting roadmap.
Aotearoa New Zealand Climate-Related Disclosure Framework evaluation - Interim report published
As part of our research into assessing the effectiveness of the Aotearoa New Zealand Climate-Related Disclosure Framework, we have published an interim report by the university of Otago. The report describes the research methodology and provides baseline data and preliminary findings from the initial stage of the research. It includes a literature review and insights on voluntary climate-related reporting in New Zealand to date.
The final report will be published in late 2025 and will examine published Climate Statements to assess the effectiveness of the Aotearoa New Zealand Climate-related Disclosure Framework in meeting its purposes. These are:
- to encourage entities to routinely consider the short, medium and long-term risks and opportunities that climate change presents for the activities of the entity or the entity's group
- to enable entities to show how they are considering risks and opportunities
- to enable investors and other stakeholders to assess the merits of how entities are considering those risks and opportunities
Trust and Confidence: Views from Audit Committee Chairs
We commissioned research into Audit Committee Chairs perceptions of quality and performance of audits
to inform discussions on the role of audit in maintaining trust and confidence in financial reporting in New Zealand, and to examine how the standards we issue, contribute to enhancing trust and confidence in New Zealand.
The research found that trust and confidence in reported information in New Zealand is high and that
auditing standards are a key contributing factor to this. Alignment with international and Australian
accounting and auditing standards is seen as important – confirming that our convergence and
harmonisation policy is serving listed entities in New Zealand well.
Other research
We are pleased to issue our report on Enhancing Audit Quality: Aotearoa New Zealand Auditing Standards – supporting Auditors to perform high quality audits.
Our report provides commentary on findings from selected focus areas mentioned in the recent Audit Quality Monitoring Report from Financial Markets Authority - Te Mana Tātai Hokohoko.
We also highlight some future standard-setting activities that will further improve audit quality in these areas.
We commissioned the University of Auckland to undertake research into reporting practices for key audit matters (KAMs) to assess how the standard is being applied since it was first introduced in 2017.
The research reviewed 235 audit reports across a broad range of industry and entity types and assessed:
- Number and type of KAMs
- Whether KAMs are generic or entity specific
- Length and reading ease
- Voluntary reporting
Published in 2020, this is a follow-up joint review by the FMA and the XRB of the trends and changes in KAMs reporting in the three years since the new standards were introduced.
Enhanced Auditor Reporting
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This booklet sets out the findings from our research in 2018 looking at what drives small charities to obtain assurance over their financial statements.
This is the first comprehensive study into the needs of users of Tier 2 for-profit entity financial reports in New Zealand.
In view of the growing international and local trend for companies to disclose Alternative Performance Measures (APMs), this survey enables better understanding of how APMs are viewed by users of financial reports in New Zealand and whether they are effective in meeting user needs.
APM Survey Report
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In 2017, the XRB and FMA published the results of their joint analysis of Key audit matters – A stock-take of the first year in New Zealand. As well as reviewing the auditor’s reports of 168 entities, the survey engaged directly with investors, preparers, directors and auditors.
Presents key insights to interested parties on the current state of Extended External Reporting (EER) from the perspective of Preparers and Users of this information.