By Marianna Papadakis

The New Zealand accounting community has till Friday 15 November to contribute to a Targeted Review of the nation’s accounting standards framework.

The ‘Targeted Review of the New Zealand Accounting Standards Framework’ discussion paper and consultation was launched in July 2019 to gather feedback on three specific areas of the framework. 

New Zealand External Reporting Board chair Michele Embling FCA says it was an opportune time for the review, coming five years after the New Zealand Accounting Standards Framework was first introduced.

The framework governs the way the External Reporting Board, known as the XRB, sets accounting standards in New Zealand.

“The review is an opportunity for people to comment on whether the framework can be enhanced or improved or if there are any unintended consequences,” Embling says.

“The Targeted Review is an opportunity for people to comment on whether the framework can be enhanced or improved or if there are any unintended consequences”

Picture: Michele Embling FCA.

The introduction of the New Zealand Accounting Standards Framework in 2012 came at the same time as a new regime of reporting obligations for companies, registered charities, public sector and other entities through the enactment of the Financial Reporting Act 2013.

The aim of the new multi-sector, multi-standards, tiered approach was to ensure more appropriate accounting requirements and standards that are reflective of the relative costs and benefits of reporting for the relevant entities.

Embling says that all evidence indicates that overall the framework is working well, but there were a few specific areas were it was identified it would be worthwhile asking the profession for more detailed insights in how the standards are working.

The three specific matters the External Reporting Board is seeking feedback on are:

• How important it is to maintain a close alignment between Public Benefit Entity Standards for not-for-profit and public sector entities and International Public Sector Accounting Standards? 
• How important the harmonisation of for-profit disclosures with Australia is working for both preparers and users?
• And whether the Public Benefit Entity Standards tier size criteria need to be revisited?

Read more:

Watch out for a feature length interview with XRB chair – and PwC New Zealand chair – Michele Embling FCA in the next print issue of Acuity, out Monday 2 December, 2019.