Boost for Accounting Standards Review Board

The 2004 Budget more than doubles the Accounting Standards Review Board’s (ASRB) funding for development and adoption of international accounting standards, Commerce Minister Margaret Wilson announced today.

“Adopting international standards will ensure New Zealand is perceived as complying with international best practice,” she said.

“It will provide an important signal to the investment community that this country has efficient and effective capital markets.”

Margaret Wilson said the Budget's $1.09 million boost over four years allows the ASRB to liaise with international accounting standards-setting bodies, enabling New Zealand to maximise its influence on the development of international standards.

“New Zealand is keeping in line with the global trend in adopting a single internationally accepted set of financial reporting standards. It will be an important step forward in the country’s financial reporting landscape.”

The most significant advantage to New Zealand from adopting international standards will be international comparability, Margaret Wilson said.

"International investors will be able to readily comprehend New Zealand financial reports, encouraging more foreign direct investment, a key factor identified in the Government's Growth and Innovation Framework."

New Zealand is currently in the process of adopting international accounting standards, and entities will be required to report in accordance with the international standards for periods starting from 1 January 2007, with optional compliance from 1 January 2005.

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