We enable high quality, credible, and integrated reporting through the provision of robust frameworks and standards that are internationally credible, while being relevant to Aotearoa New Zealand so that reporting and assurance in New Zealand promotes trust, confidence, transparency and accountability.
Reporting system overview
Our starting point for the development of standards is the adoption of international standards.
This enables international alignment, which is particularly important for entities operating in the international capital markets where being able to assert compliance with international reporting standards is critical for fund raising.
This approach also reduces domestic standard-setting costs.
The main international standard setting bodies we liaise with are:
The International Accounting Standards Board (IASB): International Reporting Standards (IFRS)
The International Public Sector Accounting Standards Board (IPSASB): International Public Sector Accounting Standards (IPSAS)
The International Auditing and Assurance Standards Board (IAASB): International Standards on Auditing (ISA)
The International Ethical Standards Board for Accountants (IESBA): International Code of Ethics
We have also recently commenced relationship building with international organisations in the field of Climate-related disclosures and integrated reporting.
In addition to developing New Zealand specific standards (such as Service Performance Reporting) we also explore the option of ‘New Zealand-izing’ international-based standards, where appropriate. This is a critical aspect of ensuring preparers and users have trust and confidence in the information provided, as well as providing a platform to understand whether standards are generating the information users need and what practical issues are being encountered with the implementation of standards in New Zealand.
Consultation with stakeholders before issuing any standards is a statutory obligation and an essential part of the standard-setting process. We organise many seminars and webinars as well as publish articles and newsletters on a wide range of matters. The XRB Board also engages with key stakeholder groups about broader financial reporting system matters.
Engagement helps us to:
Understand where in New Zealand the proposed standard is likely to be needed and whether the proposed standard meets those needs.
Establish the pros and cons of adopting the standard in New Zealand.
Explore any unintended consequences or risks arising from adopting the standard or potential drawbacks of not adopting it.
Assess whether the criteria for application of the standard is appropriate for New Zealand entities