Standards Framework

In April 2012, the XRB issued a new Accounting Standards Framework. The new Framework is based on a multi-sector, multi-tiers reporting approach and is being rolled-out progressively during the 2012-2015 period.  More information about the new Accounting Standards Frameworks can be found on the Accounting Standards Framework page.

The new Accounting Standards Framework is being implemented in three stages:

  • Stage 1 (mainly involving changes to the accounting standards for for-profit entities) is effective for periods beginning on or after 1 December 2012. 
  • Stage 2 (mainly involving changes to the accounting standards for public sector public benefit entities) is effective for periods beginning on or after 1 July 2014. 
  • Stage 3 (mainly involving changes to the accounting standards for private not-for-profit public benefit entities) is expected to be effective for periods beginning on or after 1 April 2015.

Multiple Standards and Tiers

The new Accounting Standards Framework consists of different suites of standards for for-profit entities and public benefit entities, and for tiers within those sectors.

The specific requirements (including the definition of “for-profit entities” and “public benefit entities”, the criteria for each tier, and the standards to be followed for each tier) are specified in a standard called Standard XRB A1.  Standard XRB A1 is issued by the XRB Board.  It is the overarching standard that establishes which accounting standards apply to which entities.

An updated version of XRB A1 is being issued as part of each stage of the roll-out.

Applying Standard XRB A1

In order to apply Standard XRB A1 an entity must first determine whether it is a for-profit or public benefit entity (PBE), and if it is a PBE, then whether it is a public sector or not-for-profit PBE.

The following flow chart provides an easy way to determine this. Clicking on the coloured shapes will take you to further charts on the decision tree and/or further information.
 

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