IFRS

Accounting standards for For-profit entities
Accounting standards for for-profit entities are based on International Financial Reporting Standards (IFRS) and are referred to as New Zealand equivalents to International Financial Reporting Standards (NZ IFRS).

The XRB has an "adopting international standards" strategy, and accordingly, would normally issue NZ IFRS in respect of each pronouncement made by the International Accounting Standards Board (IASB).

However, there are a number of differences between NZ IFRS and IFRS:

• Wording in the standards has been amended to accommodate the New Zealand legislative environment
• Additional New Zealand specific disclosures
• Additional New Zealand standards dealing with areas not dealt with under IFRS, such as in relation to summary and prospective financial statements 

Accounting standards for Public-benefit entities
In New Zealand public-benefit entities are required to apply Public Benefit Sector Standards (PBE Standards). PBE Standards are based on International Public Sector Accounting Standards (IPSAS) with some modifications such as:

• PBE Standards modify IPSAS for any recognition, measurement or disclosure matters considered inappropriate in New Zealand. Such modifications are only made where the IPSAS requirement in question has a material impact on the financial position or performance being reported, and that impact would adversely detract from the financial statements’ usefulness to users
• PBE Standards include other relevant standards (including domestic standards) appropriate for New Zealand
• The PBE Standards are also modified to make them relevant, applicable and understandable to the not-for-profit sector preparers and users. Some modification is desirable to enhance their usefulness in the not-for-profit context

More information on New Zealand’s reporting framework can be found from our publication Financial Reporting Guide – An overview of the New Zealand Financial Reporting Framework below.

EY maintains a global IFRS network to ensure a consistent application of IFRS worldwide. We are represented in international as well as in New Zealand’s national bodies and can therefore contribute to informed discussions for improving financial reporting.  In our Oceania IFRS Professional Practice team, we have a team of IFRS specialists with extensive experience in IFRS application and sector expertise.