Background

The External Reporting Board of New Zealand (XRB) is an independent Crown Entity (ie an entity within the government sector) responsible for the development and issuance of accounting and auditing and assurance standards in New Zealand. The XRB, through its sub-board the New Zealand Accounting Standards Board (NZASB), is the official standard-setting body for New Zealand.

Accounting Standards

IFRS Accounting Standards are adopted via New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), which are fully converged with IFRS Accounting Standards. NZ IFRSs include additional domestic requirements appropriate for New Zealand. These additional requirements do not affect a for-profit entity’s ability to assert compliance with IFRS. NZ IFRS is applied by all for-profit entities that have public accountability and all for-profit public sector entities that are large. Other for-profit entities with requirements to prepare general purpose financial statements may elect to apply NZ IFRS with disclosure concessions.

Sustainability Disclosure Standards

The External Reporting Board (XRB) was enabled by the Financial Sector (Climate Related Matters and Other Matters) Amendment Act 2021 (the Act) to issue a climate-related disclosure framework. In response, the XRB issued Aotearoa New Zealand Climate Standards (NZ CS) in December 2022. NZ CS apply to climate reporting entities as identified in the Act.

*The information above has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.