The PBE Financial Reporting Framework –
minimum statutory requirements
Audit and Assurance
Requirements
Basis for preparation
of financial statements
PBE with Public Accountability
Financial Statement Audit
NZ IPSAS (full)
PBE with annual expenditure over $30
million
Financial Statement Audit
NZ IPSAS (full)
PBE with annual expenditure between
$2 million and $20 million
Financial Statement Audit
NZ IPSAS with RDR
PBE with annual expenditure between
$1 million and $2 million
Financial Statement Audit
PBE with annual expenditure between
$500 thousand and $1 million
Financial Statement Audit
or Review
PBE with annual expenditure between
$125 thousand and $500 thousand
No audit or assurance
requirements
PBE with annual expenditure less that
$125 thousand
No audit or assurance
requirements
Tier
1
2
3
4
1
Simple Format
Reporting – Accrual
Simple Format
Reporting - Cash
New Zealand Incorporated
Companies
GAAP
Requirement
Audit
Requirement
Filing
Requirement
NZ IFRS
Yes
Yes
Overseas company registered as
conducting business in New Zealand is
large, defined as exceeding:
$10 million in revenue or;
$20 million in assets
NZ IFRS with RDR
Yes
Yes
Large subsidiary of an overseas
company and large, defined as
exceeding:
$10 million in revenue or;
$20 million in assets
NZ IFRS with RDR
Yes
Yes
Large company where between 25%
and 50% of the voting shares are
overseas owned
NZ IFRS with RDR
Yes
Yes
Company is large, defined as exceeding:
$30 million in revenue or;
$60 million in assets
NZ IFRS with RDR
Yes
(can opt-out)
No
Other companies with 10 or more
shareholders, unless the shareholders
opt-out by a 95% resolution
NZ IFRS with RDR
(can opt-out)
Yes
(can opt-out)
No
Companies with fewer than 10
shareholders, where shareholders
holding at least 5% of the voting shares
opt-in
No requirement
(can opt-out)
No
(can opt-out)
No
FMC Entities or defined as “publicly
accountable”
In general all other privately held non-large companies will have no requirement to prepare annual
financial statements in accordance with GAAP, but will still have a requirement to prepare annual financial
statements in accordance with minimum reporting requirements as established by the Inland Revenue
Department.
Please contact your local Crowe Horwath advisor on 0800 494 569 with any questions around how
this applies to your business.
This fact sheet provides general information only, current at the time of production. Any advice in it has been prepared without taking into account your
personal circumstances. You should seek professional advice before acting on any material.
Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath is a
separate and independent legal entity. Crowe Horwath (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe
Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or
any other Crowe Horwath member.
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