XRB approves increased size limits for PBE entities

There is good news from the XRB for Tier 2 and Tier 3 Public Benefit Entities (PBEs) that may have been close to breaching the size limits of the next highest accounting standards framework Tier (Tier 1 and Tier 2 respectively).
The Tier size limit criteria for scoping Tier 1 and Tier 3 entities has been amended for periods ending after 28 March 2024, which will provide relief for these entities as they will likely now not breach the size criteria to have to move to the next highest Tier.

Tier 1 entities

Under XRB A1 Application of the Accounting Standards Framework (XRB A1) a PBE must report in accordance with Tier 1 PBE Accounting Requirements if it:

1. has public accountability at any time during the reporting period; or
2. is large.

The size criteria for large has been increased from total expenses over $30m to total expenses over $33m for periods ending after 28 March 2024.

Tier 3 Entities

For periods ending after 28 March 2024, under XRB A1 a PBE may elect to report in accordance with Tier3 PBE Accounting Requirements if it:

(a) does not have public accountability; and
(b) has total expenses less than or equal to $5 million (increased from $2 million)

You can read more on this here.

For more on the above, please contact your local BDO representative.