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:

 

For Profit Entity (FPE)

Public Benefit Entity (PBE)

 

 

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:
IPSAS     International Public Sector Accounting Standards
SFR-A    Simple Format Reporting - Accrual
SFR-C    Simple Format Reporting - Cash ( NOT a GAAP compliant standard)

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.