Pitopito Kōrero

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February 2025

Kia ora from Wendy Venter

Welcome to the first edition of Pitopito Kōrero for 2025, and my first edition as Chief Executive.

I’m looking forward to an exciting year after taking over from April Mackenzie, who has left the organisation in great shape.

As a former auditor, public servant, and director, I’m keenly aware of the role the XRB plays. There is enormous value in reporting and assurance standards that are clear, practical and focus on the things that make a difference.

In addition to doing a lot of listening, my initial priorities are refreshing the XRB’s statement of intent with the Board, focusing on the next steps for climate reporting and assurance, and engaging with stakeholders. 

On that note, we are hosting two engagement opportunities next week that will be of interest to some of you.

  • The first is a panel discussion on a proposed auditing standard for less complex entities, tailored to suit New Zealand. If this is something you would like to contribute to the development of, we are hosting a series of engagement events, including an online panel discussion on Monday 17 February. Find out more and register here.
  • The second is a panel discussion on possible improvements to public sector performance reporting at Victoria University next Tuesday, 18 February. The panel of experts includes Ian Carruthers, Chair of the International Public Sector Accounting Standards Board, who is visiting New Zealand. Space is limited, so if this is an area of interest for you, book your place as soon as possible.

I look forward to seeing some of you there and meeting as many of you as possible over the coming weeks and months.

Navigate the Greenhouse Gas (GHG) assurance report

The XRB has published a GHG Assurance Report Explainer to help users navigate GHG assurance reports, which will soon accompany the climate statements of climate reporting entities. 

This guidance aims to help users of GHG assurance reports find answers to the following questions:

  • What information has been assured?
  • What are the different levels of assurance and what confidence do they provide?
  • What are the different types of conclusions?
  • What else might the GHG assurance report tell the users?

IPSASB climate exposure draft

We are seeking input to a submission to the International Public Sector Accounting Standards Board (IPSASB) in response to its exposure draft of a global public sector climate-related disclosure standard.

IPSASB has issued its exposure draft (SRS ED) of the world’s first climate-related disclosure standard for governments around the world. Read more here.

The XRB’s Sustainability Reporting Board intends to submit a response to the IPSASB consultation, which is open until 28 February 2025.

Please reach out if you wish to input into the SRB’s submission. Contact the project team at sustainability@xrb.govt.nz or call +64 4 550 2030 to speak with a member of the team.

New international standard for Audits of Financial Statements of Less Complex Entities (ISA for LCE) - consultation panel event

While the auditing standards (ISA (NZ)) are scalable, we have heard concerns that these standards are becoming increasingly complex and are written in the context of highly regulated, large, listed entities. In New Zealand, there are many less complex entities that have audits of financial statements, including charities, sports clubs, schools and early childhood centres.

We are currently consulting on whether New Zealand should adopt a new auditing standard, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). The ISA for LCE is a stand-alone auditing standard available for auditors to use when auditing less complex entities.

Join our panel discussion to explore the potential benefits, costs and usefulness of this standard for New Zealand.

Assurance over sustainability information

The International Auditing and Assurance Standards Board (IAASB) has recently issued ISSA 5000, General Requirements for Sustainability Assurance Engagements. ISSA 5000 covers a wide range of assurance engagements, including over GHG emissions disclosures, climate statements, as well as other sustainability reports. It aims to be able to be applied by all assurance practitioners. The XRB is monitoring uptake and implementation of the standard as we consider whether ISSA 5000 should be issued by the XRB.

In brief

Updates

Events

Consultation on ISA (NZ) Less Complex Entities (LCEs)

Current consultations

In case you missed it 

Release of He Tauira

On 6 December 2024, the XRB Board approved the release of the draft non-financial reporting framework, He Tauira. The voluntary framework guides entities in Aotearoa New Zealand to consider how they articulate their long-term intergenerational impact. 

Download He Tauira here, as well as the accompanying user guide, Mā te mahi.

About differential reporting for climate-related disclosures

On 13 December 2024, MBIE released a discussion document on Adjustments to the climate-related disclosures regime. One of the points made in that document relates to the possibility for the XRB to issue differential reporting standards for climate-related disclosures (see paragraph 44 onwards).

We have issued a document on differential climate reporting, aiming to:

  • provide information on our plan to consult on Aotearoa New Zealand Climate Standards (NZ CS), focusing on the topic of differential climate-related reporting
  • help readers of the MBIE discussion document to understand the context for the discussion of reporting thresholds and answer two questions in the document regarding differential climate reporting.

Read the document here.

Transition planning guidance issued for climate reporting

In partnership with the Sustainable Business Council, the XRB has published two targeted guidance documents on transition planning: a short overview about the why and what of transition planning, and a guide for executives.

These new guidance documents aim to provide targeted insights to specific readers, in addition to our existing guide for directors published with the Institute of Directors and a brief questions to get started guide.

The XRB has also published guidance on disclosures relating to transition planning.

The content of this newsletter is for general information only and does not constitute professional advice.  The XRB expressly disclaims all liability for any loss or damages arising from reliance upon any information in this newsletter. ​

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