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Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standards - Financial reporting standards

17: Financial reporting standards may cover non-financial reporting

You could also call this:

"Financial reports can include more than just money matters"

Illustration for Financial Reporting Act 2013

When it comes to financial reporting standards, you can report on more than just financial things. You can report on how well an entity is doing, or the transactions they have with related parties. You can also report on other non-financial matters that are related to the entity's financial reporting.

The Governor-General can make an Order in Council to allow the Board to issue standards for reporting on things like an entity's governance, strategic direction, or the social and environmental context they operate in. The Minister can recommend this if they think it will help entities report on both their financial and non-financial performance in a integrated way.

This section of the law does not limit what is said in section 15. If an Order in Council is made, it is considered secondary legislation, and you can find out more about publication requirements in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632907.

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Part 2External Reporting Board, standards, and provisions that apply to other enactments
Standards: Financial reporting standards

17Financial reporting standards may cover non-financial reporting

  1. A financial reporting standard may relate to reporting on—

  2. an entity's performance; or
    1. an entity's related party transactions; or
      1. any other non-financial matter that directly relates, or is incidental or ancillary, to an entity's financial reporting; or
        1. other non-financial matters authorised by an Order in Council made under subsection (2).

          1. The Governor-General may, on the recommendation of the Minister, by Order in Council,—

          2. authorise the Board to issue financial reporting standards that relate to reporting on 1 or more of the following matters:
            1. an entity's governance:
              1. an entity's strategic direction and targets:
                1. the social, environmental, and economic context in which an entity operates:
                  1. any other matter relating to an entity's performance or position; and
                  2. specify conditions to which the authorisation is subject.

                    1. The Minister may make a recommendation only if he or she is satisfied that it is desirable for standards referred to in subsection (2)(a) to be issued in order to provide for the integrated reporting of an entity's performance or position in terms of both financial and non-financial information.

                    2. This section does not limit section 15.

                    3. An order under subsection (2) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                    Notes
                    • Section 17(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).