To assist you in accessing information relevant for your organisation our financial reporting resources are separated based on the relevant set of accounting standards - for-profit accounting standards or public benefit entity accounting standards.
Guidance is provided below to assist you in determining your organisations reporting obligations, entity classification and the applicable set of accounting standards.
Our financial reporting resources can be accessed using the left hand menu.
The New Zealand Financial Reporting Framework consists of two parts:
The Statutory Financial Reporting Framework, which sets out the statutory preparation, audit and filing requirements for various types of entities; and
The Accounting Standards Framework, which establishes the accounting standards to be applied by entities with statutory reporting obligations.
Statutory Financial Reporting Framework
The statutory requirements for entities to prepare General Purpose Financial Reports are contained in the Financial Reporting Act 2013 and other legislation applying to the entity type (e.g. Companies Act 1993) as amended by the Financial Reporting (Amendments to other Enactments) 2013 Act.
For an overview of the New Zealand statutory financial reporting framework and key effective dates please refer to EY’s Navigating the New Terrain – Updated February 2015 publication.
Entities are advised to review legislation to determine their statutory financial reporting obligations.
Accounting Standards Framework
Entities with requirements to prepare General Purpose Financial Reports (GPFR) are required to comply with requirements established by the External Reporting Board (XRB) or its sub-Board the New Zealand Accounting Standards Board (NZASB).
The XRB’s Accounting Standards Framework is a multi-standards framework that requires different sets of accounting standards to be applied by for-profit entities and public benefit entities (PBEs).
Determining the type of entity
Under the XRB’s multi-standards framework, determining whether an entity is a PBE or a for-profit entity is the first step in establishing the particular financial reporting requirements for any entity that has a statutory requirement to prepare GPFR.
For-profit entities are reporting entities that are not PBEs.
PBEs are entities whose primary objective is to provide goods or services for community or social benefit, and where equity has been provided with a view to supporting that primary objective, rather than for a financial return to equity holders.
For entities in a group, each entity within the group with reporting obligations will need to determine whether it is a PBE or for-profit entity.