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Preparing for the new public benefit entity standards

Audit New Zealand expects its clients to have adequately prepared for the transition to the new PBE accounting standards. We encourage entities to discuss the audit of the transition and expectations with their auditor early in the audit process.

Entities need to:

  • determine its reporting tier;
  • assess and document the differences that may have a recognition, measurement, presentation, or disclosure effect on the financial statements;
  • update the statement of accounting policies to comply with the new standards;
  • prepare an opening statement of financial position and restate comparatives (including disclosures) to comply with the new standards. Entities may want to prepare pro-forma financial statements for their auditor to comment on;
  • determine any required system changes to comply with the new standards. For example, system changes may be required in collecting related party information; and
  • consider group reporting implications that could arise from accounting policy differences between the PBE group and its for‑profit subsidiaries.

Entities should also consider any sector guidance or advice provided to their sector.

Page last updated: 2 February 2015