|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||New Zealand has adopted New Zealand equivalents to IFRS Standards (NZ-IFRS) for all public companies. NZ-IFRS are substantively identical to IFRS Standards as issued by the IASB Board with three additional New Zealand-specific standards.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Foreign companies are required to use NZ-IFRS unless specific exemption is granted allowing them to use another financial reporting framework including IFRS Standards as issued by the IASB.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||No.|
Role of the organisation
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
For-profit entities were permitted to adopt NZ equivalents to IFRS Standards (NZ-IFRS) for periods beginning on or after 1 January 2005. NZ-IFRS were mandatory from 1 January 2007.
The XRB has defined two tiers of reporting for for-profit entities, with different financial reporting standards applying to each tier.
Tier 1: Entities that have public accountability* plus for-profit public sector entities that are large** apply NZ-IFRS. These are NZ equivalents to IFRS Standards as issued by the Board with three additional New Zealand-specific standards (FRS-42 Prospective Financial Statements, FRS-43 Summary Financial Statements, and FRS-44 New Zealand Additional Disclosures).
* Entities with public accountability include all public issuers of debt or equity securities, licensed supervisors, registered banks, deposit takers, insurance providers and superannuation schemes and any other entity that trade securities in a public market or hold assets in a fiduciary capacity as part of its primary business.
** A for-profit public sector entity is large if it has total expenses over NZ$30 million (approximately US$ 21 million).
Tier 2: Entities that do not have public accountability and for-profit public sector entities that are not large may elect to be in Tier 2. If they do, they apply New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ-IFRS-RDR). NZ-IFRS-RDR has the same recognition, measurement, and presentation requirements as NZ-IFRS but with significant disclosure concessions.
The XRB has also developed accounting standards for use by public benefit entities (PBE). The PBE Standards are based on International Public Sector Accounting Standards (IPSAS) with minor modifications mainly to terminology and application guidance. They also include several New Zealand domestic PBE Standards specifying additional requirements where there is a gap in IPSAS. Adoption of the PBE standards for public sector PBE entities is mandatory for periods beginning on or after 1 July 2014 (with no early adoption permitted). Adoption of the PBE Standards for registered charities is mandatory for periods beginning on or after 1 April 2015 (with early adoption permitted from periods beginning on or after 1 April 2014).
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
Yes, the use of IFRS Standards is required for all domestic companies whose securities trade in a public market. The standards are referred to as NZ-IFRS. These are identical to IFRS Standards.
IFRS Standards are augmented with domestic standards only where there is a gap in international standards, (domestic standards do not replace an international standard) or to specify disclosures that are additional to those contained in the international standards. There are currently three New Zealand standards applicable to for-profit entities using NZ-IFRS. They cover:
- summary financial statements;
- prospective financial statements; and
- a small number of New Zealand specific disclosure requirements (in addition to those in IFRS Standards).
There are also detailed Appendices to the New Zealand equivalent to IFRS 4 Insurance Contracts specifying requirements for life insurance and general insurance. Those domestic standards reflect local legislative requirements.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
NZ-IFRS are required for the following three categories of entities regardless of whether their securities trade in a public market:
- entities that have public accountability (as defined);
- entities that are deemed to have public accountability and that are FMC reporting entities (as defined by legislation). Such entities include all public issuers of debt or equity securities, licensed supervisors, registered all banks, deposit takers, insurance providers and superannuation schemes; or
- for-profit public sector entities that are large (as defined).
Entities that do not have public accountability or non-large for-profit public sector entities that are required by law to report using GAAP may apply NZ-IFRS-RDR.
Any company or other for-profit entity that is not required by law to apply NZ-IFRS is permitted to do so.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnotes states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
The XRB has defined two tiers of reporting for-profit entities, with different financial reporting standards applying to each tier.
Tier 1 entities apply standards that are equivalent to IFRS Standards as issued by the Board without any modifications (but augmented by several local standards). Thus Tier 1 entities comply with both NZ-IFRS and IFRS Standards as issued by the Board.
Tier 2 standards are based on IFRS Standards with disclosure concessions (NZ-IFRS-RDR). NZ-IFRS-RDR has the same recognition, measurement, and presentation requirements as NZ IFRSs but with significant disclosure concessions.
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
They use the Tier 2 standards NZ-IFRS-RDR: Non-publicly accountable entities or non-large for-profit public sector entities that are required by law to prepare general purpose financial statements may use the RDR. That is, they apply the same recognition and measurement requirements as in IFRS Standard, but with substantially reduced disclosures (based in part on the disclosure concession principles used in IFRS for SMEs Standard).
Most small and medium-sized for-profit entities do not have a statutory requirement to prepare financial statements in accordance with GAAP.
Other comments regarding use of the IFRS for SMEs Standard?
General requirements for companies for-profit entities
All companies that meet the definition of a Reporting Entity under the Financial Markets Conduct Act 2013 must file their Annual Report (which will comply with IFRS) with the Companies Office within 4 months of balance date. This filing requirement only applies to annual reports.
Some other types of entity are also required to file annual financial reports with the Companies Office: Large overseas companies and large subsidiaries of overseas companies (within 5 months), Registered friendly societies or branches (within 3 months) and Industrial and provident societies (within 4 months).
The main purpose of the filing is to ensure that a copy of the annual report is available from a public register.
All listed entities listed on the New Zealand Stock Exchange (NZX) are required to file their annual financial report with the NZX within three months of year-end and a six-monthly financial report within three months of the half-year-end. It must be filed and at the same time the information is provided to quoted securities holders (their shareholders).
The main purpose of the filing is to ensure that market participants have access to the financial reports at the same time, which is why the NZX filing requirements are more stringent than those under the Financial Markets Conduct Act 2013.
General requirement for companies
The NZX has an announcement platform that is designed to allow for easy dissemination of the information by the NZX. The main purpose is to facilitate access to the information by investors (ie current and potential).
The annual reports must be filed in an ‘electronic’ format specified by the NZX. Generally this will be a PDF equivalent of their printed half-yearly or annual report.
What type or format of structured electronic filing is required or permitted?
What is the purpose of the electronic filing?
What documents are required to be filed to the electronic filing system?
Is the financial data provided in XBRL format publicly available?
Is the XBRL reporting system based on the IFRS Taxonomy issued by the IASB?
If no, what are the reasons for not using the IFRS Taxonomy?
Is the IFRS for SMEs filing adopted in the XBRL reporting system?
If no, are there any plans to implement the IFRS for SMEs filing in the future?
How is the XBRL financial statement reporting system set up?
What is (are) the intended purpose(s) of the local base taxonomy?
Which IFRS Taxonomy files are used?
Which part(s) of the IFRS (local) Taxonomy do filer's submissions import/refer to?
Are filers permitted to replace or override any aspects or specified features of the IFRS (local) Taxonomy?
If yes, which aspects and how does this work?
What is the scope or coverage of XBRL filing/tagging?
Are there any plans to extend the coverage of the XBRL filing/tagging in the future?
Which version of the IFRS Taxonomy is being used
If the taxonomy is to be updated to the 2014/2015 version, which of the following module(s) is (are) to be used?
Any guidelines or submission rules for filers?
Do bodies in this jurisdiction use XBRL for purposes other than general purpose financial reports? (For example, taxation authorities, statistical purposes etc.)
Role of the organisation
Role of the organisation
XRB an independent Crown Entity responsible for the development and issuing of accounting and auditing and assurance standards in New Zealand.