For-profit Accounting Standards (NZ IFRS)
Financial Reporting: EY New Zealand
Welcome to EY’s For-profit Accounting Standards page.
This page contains content and resources that are relevant to for-profit entities with requirements to prepare financial statements in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
For-profit Accounting Standards Framework overview
For-profit entities with requirements to prepare financial statements that comply with NZ GAAP are required to prepare financial statements in accordance with For-profit Accounting Standards as issued by the External Reporting Board (XRB).
The For-profit Accounting Standards Framework has a multi-tiered structure, whereby entities will fall into Tier 1 by default, but can opt-in to a lower tier if they meet the criteria of that tier.
The For-profit Entity Accounting Standards Framework is summarised in the below table.
|Entities||Applicable Accounting Standards||Additional Comments|
|Tier 1||NZ IFRS||N/A|
|Tier 2|| ||NZ IFRS RDR||Adoption now permitted|
|Tier 3|| ||NZ IFRS Diff Rep|| Tiers 3 will be withdrawn from the accounting standards framework from |
1 April 2015
|Tier 4|| ||Old NZ GAAP|| Tiers 4 will be withdrawn from the accounting standards framework from |
1 April 2015
The removal of differential reporting and “old New Zealand GAAP”
Tier 3 and Tier 4 for-profit entities that continue to have requirements to prepare financial statements in accordance with NZ GAAP that currently prepared financial statements in accordance with “old New Zealand GAAP” or NZ IFRS differential reporting will need to move to Tier 1 or Tier 2 for periods beginning on or after 1 April 2015 (i.e. for 31 March 2016 year-ends and onwards).