Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standards - Tiers of financial reporting

33: Consultation on proposals

You could also call this:

"The Board must talk to people who will be affected by big changes to a strategy before making a decision."

Illustration for Financial Reporting Act 2013

When the Board is getting ready to change or replace a strategy, they must talk to the people who will be affected by the change. The Board thinks about who will be substantially affected and takes reasonable steps to consult with them. You can see how this rule has changed over time by looking at the earlier version of the law.

The Board does not have to do this if they think the change is small, like fixing a minor error. They can decide that the change is not a big deal and does not need a lot of consultation. This is up to the Board to decide.

If the Board forgets to consult with people, it does not mean the change is not valid. The change can still happen even if the Board did not follow the rules about consulting people. This means the change is still okay, even if the Board made a mistake.

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This page was last updated on 3 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632939.

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32: Process for preparing proposals to vary or replace strategy, or

"How to plan a change to the financial reporting strategy"

34: Purpose and application, or

"What this law is about and who it applies to"

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

33Consultation on proposals

The Board must, in preparing a proposal for the variation or replacement of the strategy, take reasonable steps to consult the persons or representatives of persons who, in the opinion of the Board, would be substantially affected by the variation or replacement.
However, the Board is not required to comply with subsection (1) in respect of a variation to the strategy if, in its opinion, the variation corrects a minor error or is otherwise of a minor nature.
Any failure to comply with subsection (1) does not affect the validity of the variation or replacement.

Compare

1993 No 106 s 34B(4), (5)