“The Incorporated Societies Act 2022 that was passed in April this year brings about many changes to how societies operate. One of the areas of change is how societies prepare their financial statements.
From October 2023, once a society re-registers, it will have to start using External Reporting Board (XRB) accounting standards in its financial statements, unless it qualifies as a ‘small society’. ” – Companies Office.
A ‘small society’ is defined in section 103 of the Incorporated Societies Act 2022.
About 17,000 societies on the Incorporated Societies Register as of end of June 2022 are not registered charities. About 60% of these will likely qualify as ‘small societies’ and be exempt from following XRB accounting standards. Most societies that don’t qualify as ‘small societies’ will likely be required to follow either the Tier 3 or Tier 4 standards.
A 45 minute webinar about the new financial reporting requirements for societies, presented by MBIE and XRB, is being held at 2pm on Wednesday, 24 August 2022. <Information and registration>