2025 Amendments to XRB A1 Application of the Accounting Standards Framework
XRB A1 establishes the Accounting Standards Framework in New Zealand and outlines the criteria for the application of different financial reporting tiers, classifying entities based on their size, nature and public accountability. It also specifies the accounting standards applicable to each reporting tier across the for-profit, the public sector and not-for-profit sectors.
2025 Amendments to XRB A1 Application of the Accounting Standards Framework amends XRB A1 by:
- Clarifying the definition of public accountability to make application more straightforward.
- Increasing the Tier 1 size threshold for for-profit public-sector entities to $33 million of total expenses to align with the Tier 1 size threshold for Public Benefit Entities (PBEs).
- Revising terminology in the PBE Tier 4 criteria and ‘moving between tiers’ provisions to provide clearer guidance on when the Tier 4 criteria are met.
Commencement and application
Application of the amendments to XRB A1 is required for accounting periods beginning on or after 1 January 2027.
Application is permitted for accounting periods that begin before 1 January 2027 but have not ended or do not end before 17 July 2026.
Amendments