In our submission we express support for the necessary changes to XRB A2 Meaning of Specified Statutory Size Thresholds to reflect the recent amendments to section 45 (meaning of “large”) and section 46 (meaning of “specified not-for-profit entity”) in the Financial Reporting Act 2013. We do not expect the proposed amendments to XRB A2 to impact on the assessment of whether an entity can apply the Tier 4 Standard.

We highlight one inconsistency in how the definition of control is referred to within the extant XRB A2 and the ED. Assumptions are made about an entity’s classification as a for-profit entity or public benefit entity for financial reporting purposes based on its legal form and charity registration status. While these assumptions are reasonable, we are concerned there may be rare exceptions.