Accounting Standards Framework

Question 1

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an ________________responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 1

independent Crown Entity

Question 2

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s ___________________ (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 2

Accounting Standards Framework

Question 3

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (________________) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 3

Standard XRB A

Question 4

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates _______________________ and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 4

separates “for-profit” and “public benefit” entities

Question 5

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has ___________________ depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 5

different accounting standard

Question 6

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards _______________________. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 6

depending on the type and size of entity

Question 7

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of _____________ (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 7

NZ IFRS RDR

Question 8

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (____________________) which has the same recognition and measurement requirements as full NZ IFRS with significantly fewer disclosures

Answer 8

Reduced Disclosure Regime

Question 9

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the _________________________________ with significantly fewer disclosures

Answer 9

same recognition and measurement requirements as full NZ IFRS

Question 10

GPFR must be prepared in accordance with the applicable financial reporting standards issued by the External Reporting Board (XRB). The XRB is an independent Crown Entity responsible for developing and issuing accounting and auditing and assurance standards in New Zealand. The XRB’s Accounting Standards Framework (Standard XRB A1) separates “for-profit” and “public benefit” entities and has different accounting standards depending on the type and size of entity. Many of these accounting standards are new, and the framework is depicted in Table 1. The main changes are as follows:

1. The new sector specific accounting standards are aimed to better meet the needs of users, including new standards for Public Benefit Entities (PBEs).
2. The introduction of NZ IFRS RDR (Reduced Disclosure Regime) which has the same recognition and measurement requirements as full NZ IFRS with _____________________

Answer 10

significantly fewer disclosures

Question 11

1. Determine whether your entity is a PBE. PBEs are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders. Further guidance as to whether or not an entity is a PBE can be found in ___________. 2. If it is a PBE, determine whether it is a public sector PBE or a not-for-profit PBE. 3. If the entity is not a PBE it is a for-profit. The term “for-profit entity” is not defined in XRB A1 but rather, comprises all entities that do not meet the definition of a PBE.

Answer 11

Appendix A of XRB A1

Question 12

2. Determine whether your entity is a PBE. PBEs are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders. Further guidance as to whether or not an entity is a PBE can be found in Appendix A of XRB A1. 2. If it is a PBE, determine whether it is _________________. 3. If the entity is not a PBE it is a for-profit. The term “for-profit entity” is not defined in XRB A1 but rather, comprises all entities that do not meet the definition of a PBE.

Answer 12

a public sector PBE or a not-for-profit PBE

Question 13

3. Determine whether your entity is a PBE. PBEs are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders. Further guidance as to whether or not an entity is a PBE can be found in Appendix A of XRB A1. 2. If it is a PBE, determine whether it is a public sector PBE or a not-for-profit PBE. 3. If the entity is not a PBE it is a _______. The term “__________ entity” is not defined in XRB A1 but rather, comprises all entities that do not meet the definition of a PBE.

Answer 13

for-profit

Question 14

4. Determine whether your entity is a PBE. PBEs are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders. Further guidance as to whether or not an entity is a PBE can be found in Appendix A of XRB A1. 2. If it is a PBE, determine whether it is a public sector PBE or a not-for-profit PBE. 3. If the entity is not a PBE it is a for-profit. The term “for-profit entity” is _________________ but rather, comprises all entities that do not meet the definition of a PBE.

Answer 14

not defined in XRB A1

Question 15

5. Determine whether your entity is a PBE. PBEs are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders. Further guidance as to whether or not an entity is a PBE can be found in Appendix A of XRB A1. 2. If it is a PBE, determine whether it is a public sector PBE or a not-for-profit PBE. 3. If the entity is not a PBE it is a for-profit. The term “for-profit entity” is not defined in XRB A1 but rather, ______________________________.

Answer 15

comprises all entities that do not meet the definition of a PBE

Question 16

After determining the type, consider which tier the entity falls into. All entities _______________. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, along with the criteria that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 16

initially default into Tier 1

Question 17

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must ___________________ that it has elected to report in accordance with a particular tier, along with the criteria that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 17

disclose in the notes of its financial statements

Question 18

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report ________________________, along with the criteria that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 18

in accordance with a particular tier

Question 19

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, ________________ that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 19

along with the criteria

Question 20

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, along with the criteria ______________________. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 20

that establish the entity as eligible to report in accordance with that tier

Question 21

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, along with the criteria that establish the entity as eligible to report in accordance with that tier.______________________________. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 21

XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made

Question 22

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, along with the criteria that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are ______________________________ in this regard. So it is left to the entity to decide how best to tangibly demonstrate the election.

Answer 22

are no legal requirements surrounding a director’s or shareholder’s resolution

Question 23

After determining the type, consider which tier the entity falls into. All entities initially default into Tier 1. However, if they meet the criteria to be in a lower tier and elect to be in that other tier, then they may prepare GPFR in accordance with the accounting standards of that lower tier. If the entity elects to be in another tier, it must disclose in the notes of its financial statements that it has elected to report in accordance with a particular tier, along with the criteria that establish the entity as eligible to report in accordance with that tier. XRB A1 does not deal with an entity’s internal documentation process as to how the election itself is made. In addition, there are no legal requirements surrounding a director’s or shareholder’s resolution in this regard. So it is left to the entity to decide ______________________________________.

Answer 23

how best to tangibly demonstrate the election

Question 24

_____________ (including RDR) apply to Tier 1 and 2 for-profit entities; PBE Standards (including RDR) apply to Tier 1 and 2 PBEs. Tier 3 PBEs apply simple format accrual standards. Tier 4 PBEs apply simple format cash standards – these are compliance frameworks and are referred to as “non-GAAP” standards. Tiers 3 and 4 of the for-profit framework are temporary tiers and apply standards which will soon be revoked

Answer 24

NZ IFRS

Question 25

NZ IFRS (________________) apply to Tier 1 and 2 for-profit entities; PBE Standards (including RDR) apply to Tier 1 and 2 PBEs. Tier 3 PBEs apply simple format accrual standards. Tier 4 PBEs apply simple format cash standards – these are compliance frameworks and are referred to as “non-GAAP” standards. Tiers 3 and 4 of the for-profit framework are temporary tiers and apply standards which will soon be revoked

Answer 25

including RDR

Question 26

NZ IFRS (including RDR) ___________________________; PBE Standards (including RDR) apply to Tier 1 and 2 PBEs. Tier 3 PBEs apply simple format accrual standards. Tier 4 PBEs apply simple format cash standards – these are compliance frameworks and are referred to as “non-GAAP” standards. Tiers 3 and 4 of the for-profit framework are temporary tiers and apply standards which will soon be revoked

Answer 26

apply to Tier 1 and 2 for-profit entities

Question 27

NZ IFRS (including RDR) apply to Tier 1 and 2 for-profit entities; PBE Standards (including RDR) apply to Tier 1 and 2 PBEs. Tier 3 PBEs apply simple format accrual standards. Tier 4 PBEs apply simple format cash standards – these are compliance frameworks and are referred to as “non-GAAP” standards. ___________________________________________________

Answer 27

Tiers 3 and 4 of the for-profit framework are temporary tiers and apply standards which will soon be revoked

Question 28

Tiers 3 and 4 of the for-profit framework were established as ___________. The associated suites of standards; NZ IFRS Diff Rep and Old GAAP, were frozen from April 2011 due to the vast majority of entities applying these standards no longer having a legislative requirement to prepare GPFR for reporting periods beginning on or after 1 April 2014. As a result, the NZ IFRS Diff Rep and Old GAAP suites of standards will be revoked for reporting periods beginning on or after 1 April 2015, and will no longer form part of GAAP. Any for-profit entities that are currently reporting in accordance with Tier 3 or 4 standards that still have a legislative requirement to prepare GPFR will need to move to Tier 2 and apply NZ IFRS RDR. Similarly the NZ IFRS PBE standards which apply to PBEs under the old accounting standards framework will become redundant from 1 April 2015 when they will be superseded by the new PBE Standards.

Answer 28

temporary tiers

Question 29

Tiers 3 and 4 of the for-profit framework were established as temporary tiers. The associated suites of standards; NZ IFRS Diff Rep and Old GAAP, were frozen from April 2011 due to the vast majority of entities applying these standards no longer having a legislative requirement to prepare GPFR for reporting periods beginning on or after 1 April 2014. As a result, the NZ IFRS Diff Rep and Old GAAP suites of standards will be revoked for reporting periods beginning on or after 1 April 2015, and will _______________. Any for-profit entities that are currently reporting in accordance with Tier 3 or 4 standards that still have a legislative requirement to prepare GPFR will need to move to Tier 2 and apply NZ IFRS RDR. Similarly the NZ IFRS PBE standards which apply to PBEs under the old accounting standards framework will become redundant from 1 April 2015 when they will be superseded by the new PBE Standards.

Answer 29

no longer form part of GAAP

Question 30

Tiers 3 and 4 of the for-profit framework were established as temporary tiers. The associated suites of standards; NZ IFRS Diff Rep and Old GAAP, were frozen from April 2011 due to the vast majority of entities applying these standards no longer having a legislative requirement to prepare GPFR for reporting periods beginning on or after 1 April 2014. As a result, the NZ IFRS Diff Rep and Old GAAP suites of standards will be revoked for reporting periods beginning on or after 1 April 2015, and will no longer form part of GAAP. Any for-profit entities that are currently reporting in accordance with Tier 3 or 4 standards that still have a legislative requirement to prepare GPFR ______________________. Similarly the NZ IFRS PBE standards which apply to PBEs under the old accounting standards framework will become redundant from 1 April 2015 when they will be superseded by the new PBE Standards.

Answer 30

will need to move to Tier 2 and apply NZ IFRS RDR

Question 31

________________ has a particular technical meaning which is defined in Standard XRB A1. Essentially it is any entity that is an issuer, a registered bank, a non-bank deposit taker, a registered superannuation scheme, or otherwise trades debt or equity securities in a public market or hold assets in a fiduciary capacity as part of its primary business.

Answer 31

Public accountability

Question 32

Public accountability has a particular technical meaning which is defined in _________________. Essentially it is any entity that is an issuer, a registered bank, a non-bank deposit taker, a registered superannuation scheme, or otherwise trades debt or equity securities in a public market or hold assets in a fiduciary capacity as part of its primary business.

Answer 32

Standard XRB A1

Question 33

Public accountability has a particular technical meaning which is defined in Standard XRB A1. Essentially it is any entity that is an issuer, a registered bank, a non-bank deposit taker, a registered superannuation scheme, or otherwise trades debt or equity securities in a public market or hold assets in a fiduciary capacity __________________________.

Answer 33

as part of its primary business

Question 34

XRB A1

Paragraph 17
Subject to the requirements on moving between tiers (set out in paragraphs 24 to 30), a for-profit entity shall report in accordance with Tier 1 For-profit Accounting Requirements if it:
(a) (i) __________________ at any time during the reporting period; or
(b) (ii) is a large for-profit public sector entity; or (b) is eligible to report in accordance with the accounting requirements of Tier 2 but does not elect to report in accordance with that tier.

Answer 34

has public accountability

Question 35

XRB A1

Paragraph 17
Subject to the requirements on moving between tiers (set out in paragraphs 24 to 30), a for-profit entity shall report in accordance with Tier 1 For-profit Accounting Requirements if it:
(a) (i) has public accountability ____________________________; or
(b) (ii) is a large for-profit public sector entity; or (b) is eligible to report in accordance with the accounting requirements of Tier 2 but does not elect to report in accordance with that tier.

Answer 35

at any time during the reporting period

Question 36

In order for New Zealand reporting entities to be able to assert compliance with IFRS, and therefore for entities to gain the benefits of ________________ and for users to gain the benefits of comparability, IFRS as issued by the IASB has to be applied. Compliance cannot be asserted if standards have been modified in a local jurisdiction (in contrast to being added to, which is permitted). This means that adoption of IFRS is essentially an “all or nothing” proposition. Therefore, NZ IFRS are substantively identical to (pure) IFRS5 . This approach results in the effective adoption of (pure) IFRS.

Answer 36

international credibility

Question 37

In order for New Zealand reporting entities to be able to assert compliance with IFRS, and therefore for entities to gain the benefits of international credibility and for users to gain the benefits of comparability, IFRS as issued by the IASB has to be applied. Compliance cannot be asserted if standards have been modified in a local jurisdiction (in contrast to being added to, which is permitted). This means that adoption of IFRS is essentially an “all or nothing” proposition. Therefore, ____________________________ . This approach results in the effective adoption of (pure) IFRS.

Answer 37

NZ IFRS are substantively identical to (pure) IFRS5

Question 38

Therefore, ___________ consisting of the same recognition and measurement requirements as Tier 1 (NZ IFRS) but with reduced disclosures, harmonised with Australia, apply to Tier 2

Answer 38

NZ IFRS RDR

Question 39

Therefore, NZ IFRS RDR consisting of the same recognition and measurement requirements as Tier 1 (__________) but with reduced disclosures, harmonised with Australia, apply to Tier 2.

Answer 39

NZ IFRS

Question 40

Therefore, NZ IFRS RDR consisting of the same recognition and measurement requirements as Tier 1 (NZ IFRS) but with reduced disclosures, __________________, apply to Tier 2.

Answer 40

harmonised with Australia

Question 41

Therefore, NZ IFRS RDR consisting of the same recognition and measurement requirements as Tier 1 (NZ IFRS) but with reduced disclosures, harmonised with Australia, _____________.

Answer 41

apply to Tier 2

Question 42

The XRB’s ____________ means that the “public accountability” criterion overrides the size criterion. This means that entities which meet the public accountability criterion will be required to report in accordance with Tier 1 requirements regardless of their size. It is possible, therefore, that some small entities that have “public accountability” will find themselves having to report in accordance with Tier 1 requirements e.g. small issuers of financial products or small FMC reporting entities with a “higher level of public accountability”.

Answer 42

tier criteria

Question 43

The XRB’s tier criteria means that the “_____________” criterion overrides the size criterion. This means that entities which meet the public accountability criterion will be required to report in accordance with Tier 1 requirements regardless of their size. It is possible, therefore, that some small entities that have “public accountability” will find themselves having to report in accordance with Tier 1 requirements e.g. small issuers of financial products or small FMC reporting entities with a “higher level of public accountability”.

Answer 43

public accountability

Question 44

The XRB’s tier criteria means that the “public accountability” criterion overrides the ____________. This means that entities which meet the public accountability criterion will be required to report in accordance with Tier 1 requirements regardless of their size. It is possible, therefore, that some small entities that have “public accountability” will find themselves having to report in accordance with Tier 1 requirements e.g. small issuers of financial products or small FMC reporting entities with a “higher level of public accountability”.

Answer 44

size criterion