Pitopito Kōrero

March 2024


New Tier thresholds reduce reporting load

On Thursday 29 February the XRB issued the amending standard which increases the size thresholds for Public Benefit Entities which will result in a reduction in reporting requirements for those entities that move to a lower Tier.  The new thresholds are:
  • $33 million expenses for Tier 2
  • $5 million expenses for Tier 3
The new thresholds apply to accounting periods ending on or after 28 March 2024. That means entities whose financial year ends on 31 March 2024 can apply the new thresholds immediately.

The changes will also affect those Incorporated Societies that are required to produce annual accounts applying XRB standards under the new Incorporated Societies rules introduced in 2023. To help societies with the changes, information has been published our website and in partnership with the Companies Office, planning for a programme of awareness raising and engagement activities is also underway. If you would like to know more about this or be involved in anyway please email communbications@xrb.govt.nz.

Thank you to everyone who commented on the proposals.

Auditors fraud watchdogs, not bloodhounds 

The International Audit and Assurance Standards Board (IAASB) is putting a spotlight on fraud-related matters with proposed changes to the international auditing standard dealing with fraud in an audit of financial statements.  
The proposed revisions strengthen the existing standard by defining the responsibilities of the auditor in relation to fraud, applying a fraud lens to describe more robust risk assessment and responses, and enhancing communication in the auditor’s report by introducing requirements to report fraud- related key audit matters.  

This topic was debated when the XRB recently hosted the IAASB Chair Tom Seidenstein in Auckland. Tom outlined the IAASB's strategy and work programme at two roundtables, one focused on audit quality and the other on assurance over non-financial information. A write up of the events can be read here.
 
Further information on the consultation can be found here or register to attend our virtual feedback forum on this topic. 

Sustainability reporting across the ditch

Mandatory climate-related disclosures are currently being proposed by the Australian Government. To coincide with a visit from the Australian Accounting Standards Board (AASB) next month, we are hosting a webinar on their proposed standards for climate-related disclosures and the potential implications for New Zealand entities. Register here and if you have a specific question you’d like posed to the AASB, email sustainability@xrb.govt.nz.

In brief

Events

Consultations

  • IAASB Narrow Scope Amendments: Public Interest Entities. Closes 8 April  
  • Public interest entity amendments to auditing and assurance standards. Closes 4 June.  
  • Code of Ethics for Sustainability Assurance. Closes 15 April 
  • Code of Ethics: Using the Work of an External Expert. Closes 15 April 
  • Auditors Responsibilities Relating to Fraud. Closes 15 May

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