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New Zealand

Financial Reporting Framework in New Zealand

In New Zealand, accounting standards are issued by the Financial Reporting Standards Board of the New Zealand Institute of Chartered Accountants. New Zealand refers to its standards as 'New Zealand equivalents' to IFRSs (NZ-IFRSs). NZ-IFRSs are Standards and Interpretations approved by the External Reporting Board (XRB) comprising New Zealand equivalents to:

  • International Financial Reporting Standards;
  • International Accounting Standards; and
  • International Interpretations.

There are a number of differences between NZ-IFRSs and IFRSs:

  • wording has been amended to accommodate the New Zealand legislative environment, for example, references to the Financial Reporting Act 1993;
  • additional or amended accounting recognition and measurement requirements for public benefit entities (non-business entities);
  • in some cases NZ-IFRSs permit only one of a number of options available in the corresponding IFRS;
  • additional disclosures;
  • different effective dates; and
  • different transitional requirements.

In September 2011, the XRB formally released its proposals for a new Accounting Standard Framework for New Zealand (more details).

Related news

  • Report from recent IFASS meeting released

  • Jan 17, 2013

  • A report has been issued summarising the discussions at a meeting of the International Forum of Accounting Standard Setters (IFASS, formerly the NSS) held in Zurich on 22-23 October 2012. The meeting covered a broad range of topics, including the future relationships between the IASB and regional and national standard setters, topical issues in financial reporting, reports from regional groups and administrative matters.

  • Outcomes from the fourth AOSSG meeting

  • Dec 13, 2012

  • The Asian-Oceanian Standard-Setters Group (AOSSG) has released a communiqué from its meeting held in Kathmandu, Nepal on 28 and 29 November 2012. Highlights include plans for an ‘IFRS Centre of Excellence for a Developing Country’ (IFRS COEDC) in Nepal that would help Nepal to build its standard-setting capacity, the need for rapid finalisation of the IASB's project on 'bearer biological assets', and discussion on Islamic finance accounting issues.

  • New Zealand to adopt investment entities amendments

  • Dec 10, 2012

  • The New Zealand Accounting Standards Board (NZASB) has agreed, in principle, to approve for issue in New Zealand the 'Investment Entities' amendments for application by for-profit entities.

  • New Zealand issues third package of exposure drafts towards enacting its new differential reporting regime

  • Dec 03, 2012

  • The New Zealand External Reporting Board (XRB) and the New Zealand Accounting Standards Board (NZASB) have published a third package of exposure drafts designed to implement the revised New Zealand Accounting Standards Framework. This package of proposals would result in the optional use of 'simple format reporting standards' for not-for-profit entities based on accrual accounting (linked to the proposed adoption of IPSAS), or cash accounting, depending on meeting particular criteria.

  • New Zealand finalises for-profit differential reporting regime

  • Nov 16, 2012

  • The New Zealand External Reporting Board (XRB) and New Zealand Accounting Standards Board (NZASB) have released a"for-profit package" of standards which represent the first step toward the implementation of New Zealand's new Accounting Standards Framework. The first package implements a multi-tier structure for for-profit entities, encompassing fully IFRS-compliant standards (NZ IFRS), a 'reduced disclosure regime' (NZ RDR), existing differential reporting requirements, and old NZ-GAAP.

  • New Zealand follows Australia on investment entities

  • Nov 09, 2012

  • The New Zealand Accounting Standards Board (NZASB) has tentatively decided to adopt the same strategy as the Australian Accounting Standards Board (AASB), and delay adoption of the IASB's investment entities amendments in the New Zealand context until an exposure draft can be issued proposing additional disclosures.

  • Public and private sector accounting standard differences highlighted

  • Sep 18, 2012

  • The New Zealand Accounting Standard Board (NZASB) has recently released an exposure draft which explores the practical difficulties in dealing with differences between public sector and private sector accounting standards being set by the IASB and IPSASB. The NZASB acknowledges "there is a risk that the two Boards will develop separate standards that treat like transactions in similar circumstances in quite different ways", which is a significant challenge in maintaining a credible differential reporting framework for various entities.

  • The future for public sector accounting standards

  • Sep 13, 2012

  • Ken Warren, a board member of the International Public Sector Accounting Standards Board (IPSASB) and the New Zealand External Reporting Board (XRB), has written an article providing some insights into the future direction of International Public Sector Accounting Standards (IPSAS). The article, entitled 'IPSASs through the looking glass' and recently published on the website of the New Zealand Institute of Chartered Accountants (NZICA), discusses conceptual differences between IFRS and IPSAS and likely developments in public sector accounting.

  • New Zealand regulatory update on non-GAAP measures and differential reporting

  • Sep 04, 2012

  • The New Zealand Financial Markets Authority (FMA) has issued its final guidance note on disclosing non-GAAP financial information (including 'underlying profit'). This follows the recent introduction of a Bill into the New Zealand Parliament which proposes significant changes to New Zealand’s financial reporting framework.

  • New Zealand exposure drafts propose IPSAS adoption for certain public sector entities

  • Jun 28, 2012

  • The New Zealand External Reporting Board (XRB) and the New Zealand Accounting Standards Board (NZASB) have issued for comment a set of over 40 Exposure Drafts that propose to operationalise the new Accounting Standards Framework as it applies to Tier 1 and Tier 2 'Public Sector Public Benefit Entities' (PS PBEs, essentially public sector entities without a profit motive). The new framework is based on International Public Sector Accounting Standards (IPSAS).

  • Report from recent IFASS meeting released

  • Jun 04, 2012

  • The International Forum of Accounting Standards Setters (IFASS) met in Kuala Lumpur on 29-30 March 2012. A detailed report of proceedings at the meeting has now been released, outlining discussions on numerous topics such as the relationship between standard setters and the IASB, the IASB's work programme and processes, and a report on the possible adoption of IFRS in the United States noting a possible "step back".

  • New Zealand regulator seeks comments on non-GAAP financial information

  • May 29, 2012

  • The New Zealand Financial Markets Authority (FMA) has issued a draft guidance note on the disclosure of non-GAAP financial information. The guidance note sets out the FMA's expectations on the use of financial information in corporate documents, such as transaction documents and market announcements, and is largely based on equivalent guidance recently issued in Australia.

  • Cross-Tasman merger touted for professional accounting bodies

  • Apr 02, 2012

  • The Boards of the Institute of Chartered Accountants in Australia (ICAA) and the New Zealand Institute of Chartered Accountants (NZICA) met in a joint session in Auckland to review the progress of existing collaboration initiatives, agreeing unanimously to further explore the merits of merging NZICA and ICAA into one new membership body.

  • New Zealand XRB proposed Accounting Standards Framework

  • Mar 19, 2012

  • The New Zealand External Reporting Board (XRB) has released a communiqué summarising the main matters considered at its meeting held on 13 March 2012, including the Board's decisions about the new Accounting Standards Framework.

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