New Zealand updates Accounting Standards Framework, formally revokes old GAAP

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09 Mar 2015

The New Zealand External Reporting Board (XRB) has announced today the issuance of Standard XRB A1 'Accounting Standards Framework (For-profit Entities plus Public Sector Public Benefit Entities plus Not-for-profit Entities minus For-profit Tier 3 and Tier 4 Update)' and associated Revocation Notice revoking the Tier 3 and Tier 4 for-profit accounting standards from 1 April 2015.

When the XRB's Accounting Standards Framework was issued in April 2012, the XRB Board signalled its intention to withdraw the for Tier 3 and Tier 4 for-profit accounting standards (NZ IFRS Diff Rep for Tier 3 for-profit entities and Old GAAP for Tier 4 for-profit entities) when the new statutory financial reporting framework was established. The new legislative framework, which was enacted in November 2013, removed the requirement for most entities that were previously applying NZ IFRS Diff Rep or Old GAAP to prepare general purpose financial reports.

The Accounting Standards Framework has been given effect through various revisions of Standard XRB A1 with today's version making no substantive changes to the Standard other than the removal of those two tiers as off 1 April 2015. The Revocation Notice legally revokes all NZ IFRS Diff Rep Standards and all Old GAAP Standards for reporting periods beginning on or after 1 April 2015. This means that NZ IFRS Diff Rep and Old GAAP Standards will no longer form part of Generally Accepted Accounting Practice (GAAP) from that date.

Please click for XRB Communiqué 2015/3 - 9 March 2015 offering access to the updated Standard and the Revocation Notice on the XRB website.

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