Updated PBE Tier Sizes
The amendments to XRB A1 Application of the Accounting Standards Framework increase the Public Benefit Entity (PBE) tier size thresholds applicable to entities that are required (or opt under an enactment) to prepare general purpose financial reports in accordance with accounting standards issued by the External Reporting Board.
The amendments aim to reflect the effects of inflation over time, future proof the Accounting Standards Framework until a first-principles review is carried out, and reflect the objective for the benefits of reporting to exceed the costs.
The amendments affect the PBE size thresholds based on total expenses relevant for Tier 1, Tier 2, and Tier 3 PBEs.
Commencement and application
Application of the amendments is required for accounting periods that end on or after 28 March 2024
Amendments
What the amendments mean:
The new thresholds applicable to PBEs are set out in the table below.
|
Tier |
Old criteria |
New criteria |
|
Tier 1 |
Total expenses greater than $30 million |
Total expenses greater than $33 million |
|
Tier 2 |
Total expenses less than $30 million |
Total expenses less than $33 million |
|
Tier 3 |
Total expenses less than $2 million |
Total expenses less than $5 million |
|
Tier 4 |
Total operating payments $140,000 |
No change |
*Note; an entity is also required to apply Tier 1 if it has “public accountability”