Targeted Review of the Accounting Standards Framework
In 2012 the XRB issued the New Zealand Accounting Standards Framework (the ASF), which sets out the XRB’s strategy for developing and issuing accounting standards for those entities who are required by legislation to prepare financial statements in accordance accounting standards issued by the XRB.
The ASF introduced a multi-sector, multi-standards, tiered approach to setting accounting standards in New Zealand and was issued in conjunction with the Government’s reforms to the financial reporting obligations of companies, registered charities, public sector entities (and other entities) through the enactment of the Financial Reporting Act 2013.
The ASF has only been effective for 4-5 years for most entities and therefore it is too soon to conduct a first-principles review of this framework. However, it is timely and important that we “check-in” on whether the ASF is functioning as anticipated and is achieving its original objectives.
This is your opportunity to give us your feedback on the application of the ASF. We want to understand how well the framework is working in practice and uncover any unintended consequences or new developments since the framework was first developed.
In this targeted review we are also seeking your feedback on three specific matters:
- The importance of maintaining close alignment between Public Benefit Entity (PBE) Standards (for Not-for-profit and Public Sector entities) and International Public Sector Accounting Standards (IPSAS).
- The importance of harmonisation with Australia for Tier 2 for-profit disclosures.
- Do the PBE tier size criteria need to be revisited (for NFP and public sector entities)?
You are welcome to provide feedback on all questions in the Discussion Paper or only respond to those questions which are of most interest to you.
You feedback is important to us – the public consultation period closes on 15 November 2019.