Financial Reporting Guidance
OVERVIEW
If you have to prepare General Purpose Financial Statements then you will need to understand and comply with a variant of Generally Accepted Accounting Practice (GAAP). The Financial Reporting Act 2013 and the pronouncements of the External Reporting Board (XRB) will affect you at the applicable changeover dates. For the actual standards refer XRB website (www.xrb.govt.nz). An overview of the applicable reporting standards are as follows:
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For Profit Entity (FPE) |
Public Benefit Entity (PBE) |
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Public Sector (PS) |
Not for Profit (NFP) |
| Reporting Periods |
Beginning on or after 1/4/14 |
Beginning on or after 1/7/14 |
Beginning on or after 1/4/15 |
| Tier 1 |
NZ IFRS |
PBE IPSAS |
PBE IPSAS |
| Tier 2 |
NZ IFRS RDR |
PBE IPSAS RDR |
PBE IPSAS RDR |
| Tier 3 |
N/A |
PBE SFR-A (PS) |
PBE SFR-A (NFP) |
| Tier 4 |
N/A |
PBE SFR-C (PS) |
PBE SFR-C (NFP) |
| KEY: |
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For-Profit-Entities that are not required to comply with GAAP may find that the special purpose accounting framework provided provided by the Chartered Accountants Australia & New Zealand meets their reporting needs. The official name is Special Purpose Financial Reporting Framework for For-Profit-Entities (SPFR for FPEs). This is not a GAAP standard, but is widely used and understood.
The key assessment that each entity has to make is whether they are a for-profit or not-for-profit entity.