Auditor-General's report published - Improving financial reporting in the public sector

This afternoon the Auditor-General’s report Improving financial reporting in the public sector was presented to the House of Representatives.

In 2009, we published a discussion paper that set out our concerns about the financial reporting standards for the New Zealand public sector.

This report reflects on the concerns raised in 2009, sets out our views about how well these concerns have been addressed, and provides some insight into the future of financial reporting.

There have been positive changes to accounting standards during the last six to seven years, which we expect to lead to improvements in financial reporting. The positive changes include setting up an independent body to set accounting standards and adopting a new Accounting Standards Framework for all reporting entities. We now have a tailored approach to financial reporting in the public sector and a foundation for much better reporting in future.

These changes better position the public sector to report more meaningfully. However, public entities need to take advantage of the flexibility available within the new Accounting Standards Framework by focusing on users’ information needs and what matters most.

A two-page summary of this report is also available. We hope that this report will promote further constructive debate about the future of financial reporting in the public sector.

ENDS

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