XRB Advocates for Mandatory Digital Financial Reporting in New Zealand

XRB Advocates for Mandatory Digital Financial Reporting in New Zealand

By Prathamesh 17 June, 2024
news

The New Zealand External Reporting Board (XRB) recently published a position paper, outlining the many benefits of digital financial reporting and highlighting its widespread adoption among New Zealand’s trading partners. Unlike these countries, New Zealand has not (yet!) made digital financial reporting mandatory. The XRB argues that mandatory digital financial reporting could significantly support informed decision-making and improve overall market outcomes in New Zealand.

A Retail Investor Confidence Survey conducted by Chartered Accountants Australia and New Zealand revealed strong support of 68% for mandatory digital reporting. Similar support levels were found among Australian investors. A separate survey showed that a significant portion of investment professionals rely on structured data from digital reports, with 26% frequently using XBRL data and 58% using it occasionally. These findings highlight the growing demand for structured digital reports to support investor decision-making.

Globally, digital financial reporting is required in countries accounting for more than 90% of global market capitalisation. Despite this, neither Australia nor New Zealand mandates digital financial reporting, with only voluntary reporting permitted in Australia. With structured data now extending to sustainability reports around the world, the New Zealand and Australia risk falling further behind the global norm.

To find out more details please visit : https://www.xbrl.org/