Appendix 1: A guide to the New Financial Reporting Framework for public entities

Local government: Results of the 2011/12 audits.
Public sector for-profit entities with reporting periods beginning on or after 1 December 2012 Public sector public benefit entities with reporting periods beginning on or after 1 July 2014
Entities Accounting Standards Entities Accounting Standards
Tier 1 Expenses >$30m or publicly accountablecross sign. NZ IFRS Expenses >$30m or publicly accountablecross sign. PBE Accounting Standards
Tier 2 Expenses ≤$30m and not publicly accountablecross sign.

Can elect to report as a tier 2 entity
NZ IFRS Reduced Disclosure Regime

(NZ IFRS RDR)
Expenses >$2m and ≤$30m and not publicly accountable cross sign.

Can elect to report as a tier 2 entity
PBE Accounting Standards Reduced Disclosure Regime
Tier 3 Not publicly accountablecross sign. and either all of its owners are members of the entity's governing body or not large.traingle sign. If an entity's parent or ultimate controlling party has the coercive power to tax, rate, or levy, it must satisfy the not largetraingle sign. criterion.

Can elect to report as a tier 3 entity
NZ IFRS Differential Reportingasterisk.

(NZ IFRS Diff Rep)
Expenses ≤$2m which are not in tier 4 and not publicly accountablecross sign.

Can elect to report as a tier 3 entity
PBE Simple Format Reporting Standard – Accrual
Tier 4 Applied "old GAAP" at 30 June 2011, not publicly accountablecross sign. , not required to file financial statements under section 19 of the Financial Reporting Act 1993, and not large.traingle sign.

Can elect to report as a tier 4 entity
Old GAAPasterisk. All entities permitted by law to use cash accounting

Can elect to report as a tier 4 entity
PBE Simple Format Reporting Standard – Cash

asterisk. Transitional tiers will be removed when certain financial reporting legislative changes come into force. The timing of this is uncertain.

cross sign. Publicly accountable has a specific meaning within the framework that is narrower than its general meaning.

traingle sign. Large – An entity is large if it exceeds two of total income of $20m, total assets of $10m, or 50 employees.

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