Pitopito Kōrero

Latest news and information
May 2022

Making doing good easier

This week we launched our consultation on proposed changes to Tiers 3 & 4 Not-for-Profit and Public Sector reporting. 
 
With heightened expectations for transparency and accountability for both these sectors, reporting helps New Zealanders understand how charitable and public funds are being managed and spent. Globally, New Zealand ranks highly for transparency and accountability, and accountants and those responsible for producing performance reports, have an important role to play in maintaining that. 
 
We are focused on ensuring the reporting requirements we set do not place an undue administrative burden on preparers - recognising that this releases time and resources, which can improve the wellbeing of New Zealanders.
 
Achieving a balance between cost and benefit is an ongoing focus and one that you can influence by commenting on our proposals. Engagement events will occur over the coming months including a series of Deep Dive events to be held in June.   

The consultation closes 30 September 2022. 

 

Decision on non-assurance services

Thank you to everyone who provided feedback on the Exposure Draft we issued in 2021. Our analysis of submissions identified strongly divergent views.
Given the responses, we undertook further consultation with a wide range of stakeholders. It has become clear that the common and key underlying concern is a lack of clarity around how and why the international standard has adopted a different approach to the “self-review threat prohibition” for tax planning and advisory services.

We have considered these views carefully and have decided, based on the evidence gathered through consultation, not to proceed with the non-assurance services standard as exposed.
Given the lack of common understanding as to what the revised international standard means, and the potential risk that this lack of clarity might exacerbate auditor independence concerns, we have decided to add two New Zealand specific paragraphs that will:

  • Clarify the intent of the international standard in the New Zealand context; and
  • Require documentation of the judgements involved.

The aim is to approve the revised standard on non-assurance services at the Audit and Assurance Board meeting in June this year. These are expected to be effective for periods beginning on or after December 2022.

 

Climate disclosures consultation 

Ka nui te mihi to all those who submitted, both formally and informally, on the climate-related disclosures consultation on Strategy and Metrics and Targets. The consultation has now closed and we are now in the process of reviewing submissions which will be published over the coming days.
 
Over a thousand people attended XRB events during this consultation period, and the deep dive sessions on the disclosure requirements are available to watch here. We are now working on the final exposure drafts of the standards, due to be released in late July. 

 

In brief   

Upcoming Board Meetings

  • Accounting Standards Board: 12 May
  • External Reporting Board: 20 May
  • Audit & Assurance Standards Board: 1 June

Consultations

  • Technology-related Revisions to the Code of Ethics: 9 May
  • Definition of Engagement Team and Group Audits: 16 May
  • Tiers 3 & 4 Not-for-Profit & Public Sector Reporting: 30 September.

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