XRB advocates for mandatory digital financial reporting in New Zealand
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.
The paper concludes that New Zealand is an outlier by not mandating digital financial reporting, despite the significant use of structured data in other countries. The XRB calls for the Government to consult on the introduction of mandatory digital financial reporting – something (you’ll be shocked to hear) that we wholeheartedly support here at XBRL International!
Read the XRB’s position paper here.
