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New Zealand moves towards two sets of accounting standards

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18 Mar 2011

The New Zealand Accounting Standards Review Board (ASRB) has outlined a new accounting framework for New Zealand consisting of two sets of accounting standards for entities required to prepare general purpose financial reports.

One set of accounting standards would be applied by entities with a for-profit objective, and the other would be applied by 'public benefit entities' (PBEs).

The ASRB is expected to release a Position Paper and Consultation Papers explaining the framework and the accounting standards to be applied by each category of entities by the end of April.

In relation to for-profit entities, New Zealand currently has a set of standards that are equivalent to IFRSs and a number of domestic standards and additional requirements. In the first phase of a convergence project between New Zealand and Australia, convergence of financial reporting requirements for these entities is currently being worked towards by the boards of both countries (expected to be completed by 30 June 2011).

New Zealand has being considering the possible adoption of International Public Sector Accounting Standards (IPSASs) for some time. It is possible that the ASRB may propose standards based on IPSASs for 'public benefit entities' under the new arrangements.

Click for ASRB notice (link to ASRB website). More background on the possible adoption of IPSASs in New Zealand can be found in this ASRB analysis (link to ASRB website).

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