Research report on the information needs of users of New Zealand capital markets entity reports 10 Mar The New Zealand External Reporting Board XRB has released a research report examining the usefulness of the financial reports produced by for-profit entities operating in New Zealand domestic capital markets. The new standard series implement further parts of the revised New Zealand Accounting Standards Framework and provide eligible entities with either a simplified accrual basis of accounting, or guidance on how to report using the cash basis. The meeting will include discussion on a number of IASB projects, consider the results of a survey conducted by the AOSSG on accounting and Islamic finance in the Middle East and North Africa, receive feedback on the IFRS implementation efforts and regional capacity building, and consider ongoing membership and process requirements.
By Hayes Knight - 6 August Share tweet like share email google There has been huge change in financial reporting legislation in New Zealand in recent years. A direct result is different financial reporting and assurance requirements for different types of entities going forward.
Hence it is useful to consider the new landscape in terms of how many entities have to do what in future. The past, the present, and how we got here In the past in terms of financial reporting, New Zealand has largely adopted a one-size fits all approach.
Not all entities had a statutory requirement to apply financial reporting standards, but many, if not most, did anyway.
And this was done with sound logic; if we adopt what are considered the generally accepted accounting practices then hopefully our financial statements will be understood by all, and by extension; be useful for readers of the financial statements for their understanding and decision making.
As in most first world countries, generally accepted accounting practices are established by following financial reporting standards. These are approved by Governments usually via legislation after being set by bodies that may either have been under the control of the Government, or by professional bodies but with some form of government oversight and approval.
New Zealand has moved to the former category in the past 5 years. Financial reporting has got more complex over the years.
This reflects the increasing complexity of business and organisations, as well as the impacts of entities being structured and trading multi-nationally. This globalisation of how we do business in the world has seen countries moving towards a more global approach to setting financial reporting standards.
Recent times have seen the release of a new financial reporting standard on revenue recognition that has been jointly developed by IFAC and the US standard setters. An almost revolutionary display of cooperation in financial reporting standard setting! The impacts of this move to international financial reporting standards, and globalisation, has not surprisingly resulted in more complex accounting standards over time.
The practical impact of this in New Zealand, a country where most entities have tried to follow the financial reporting standards even though many have not been required to, has meant that this has got harder and less practical. Recognition of this situation led to a comprehensive rethink of who should be required to follow what standards in New Zealand.
While this process has taken about 10 years, we are now in a position where we have a new Government financial reporting and assurance standard setter the External Reporting Board - XRB who is responsible for setting the financial reporting framework and strategy, and new legislation now in force that clarifies what type of entities have to follow what type of financial reporting standards.
Much has been written about our new financial reporting framework and there is much detail involved.
But in essence we have arrived at a rather sensible place that is largely "horses for courses" based on entity type and stakeholder need. That is, if you are a large and complex organisation then you should follow financial reporting standards suitable for that.
If you are small and simple, your financial reporting standards should very much take this into account and cost vs. The big shift The "first principles" assessment of who should have to do what in terms of financial reporting in New Zealand has resulted in a significant shift.
Previously we have had a heavy hand environment where legislation imposed financial reporting requirements on all companies, no matter what size and type. In contrast, most charities and not-for-profit entities had very little, if any, financial reporting specified in law.
That situation has now significantly changed. Companies - From all to a few Previously all approximatelyNew Zealand companies had to by law follow financial reporting standards. Now the majority will no longer have to unless they are: While it is hard to get accurate numbers of this new reporting environment, best estimates are: Given the nature of these companies the financial reporting standards are the international standards.
The remainingcompanies can either choose to adopt the Tier 2 accounting standards or they can just adopt what is required by the Inland Revenue Department. Public Sector entities - there are approximately 3, of these and all are required by law to follow financial reporting standards.
Registered charities - all 27, are now required to follow financial reporting standards of an appropriate type for their size. As can be seen from these numbers, there are now a lot more PBE entities than companies requiring to follow financial reporting standards in New Zealand.
However for the vast majority of these they will be following New Zealand developed financial reporting standards that are appropriate for their size and type, rather than international financial reporting standards.
Government owned or controlled entities should be accountable to a high standard therefore it makes sense for public sector entities to continue to be required by law to adopt appropriate financial reporting standards.Air New Zealand operates the Boeing Dreamliner in a 3-class configuration on routes from Auckland to Perth, Shanghai and Tokyo.
Business Class features flat-bed seating equipped with memory foam mattresses, a duvet, and two pillows. In New Zealand, accounting standards are issued by the New Zealand Accounting Standards Board (NZASB), a Committee of the External Reporting Board (XRB).
The New Zealand 'Accounting Standard Framework' establishes a differential reporting reporting framework that applies to three broad categories of entities, with a number of 'tiers' for each category.
The ATO is the Government’s principal revenue collection agency. Our role is to manage and shape the tax, excise and superannuation systems that fund services for Australians. Australia only. What is Standard Business Reporting (SBR)?
SBR is a Federal Government initiative that enables businesses to submit information directly to government agencies via their accounting software, for example lodging activity statements with the ATO, or financial statements with ASIC.
Welcome to the March edition of Eye on Reporting. This month was relatively quiet from a standard setting perspective. The New Zealand Accounting Standards Board (NZASB) discussed a number of important projects at its February meeting, including ED 63 Social Benefits and the related PBE project on insurance accounting.
The NZASB has decided to develop a PBE Standard based on NZ IFRS The XRB, through its sub-board the New Zealand Accounting Standards Board (NZASB), is the official standard- setting body for New Zealand. It was established under the Financial Reporting Act Its existence is continued under the Financial Reporting Act