Financial reporting tools for Public Benefit Entities
This page contains content and resources that are relevant to Public Benefit Entities with requirements to prepare financial statements in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
Accounting Standards Framework overview
Public Benefit Entities (PBEs) with statutory requirements to prepare financial statements are required to comply with PBE Accounting Standards as issued by the External Reporting Board (XRB).
The Accounting Standards Framework for PBEs 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.
Public Sector PBEs
Public Sector PBEs are required to transition to the new suite of PBE Accounting Standards for reporting periods beginning on or after 1 July 2014.
Not-for-profit (NFP) PBEs
Not-for-profit PBEs are required to transition to the new suite of PBE Accounting Standards for reporting periods beginning on or after 1 April 2015 (early adoption is permitted).
The Accounting Standards Framework for PBEs is summarised in the below table.
Public Sector and Non-for-profit public benefit entities
New PBE Accounting Standards
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PBE Standards with Reduced Disclosure Requirements (PBE Standards RDR)
PBE Simple Format Reporting – Accrual accounting
PBE Simple Format Reporting – Cash accounting
How we can help you
We can help your organisation assess how the revised framework will impact your reporting obligations and assist with the interpretation and implementation of new accounting standards applicable to your organisation.
To help you prepare and plan for the transition to new PBE Standards, we can assist with the following steps:
- Entity classification assessment – a review of the entity’s assessment of its classification as a PBE or for-profit entity for financial reporting purposes
- Initial diagnostic phase – this would include a review of current accounting policies and an initial assessment of the impact of the move to PBE Standards
- Identification and assessment of specific issues – identify specific areas of focus for the transition, consideration of the impacts on the financial statements and the processes and systems currently in place
- Implementation – assist to create new accounting policies, update financial information and systems and implement the transitional provisions, to help create an opening balance sheet
- Post implementation – monitor and assess the progress of adoption of new standards and ensure financial information produced is in line with the new requirements