Disclosure of fees for audit firms’ services (amendments to FRS-44 and PBE IPSAS 1)

Disclosure of fees for audit firms’ services (amendments to FRS-44 and PBE IPSAS 1)

The External Reporting Board (XRB) has issued amendments to FRS-44 New Zealand Additional Disclosures (for Tier 1 and Tier 2 for-profit entities) and PBE IPSAS 1 Presentation of Financial Reports (for Tier 1 and Tier 2 public benefit entities) that aim to address concerns about the quality and consistency of disclosures that an entity provides about fees paid to its audit or review firm for different types of services.

The enhanced disclosures are expected to improve the transparency and consistency of disclosures about fees paid to an entity’s audit or review firm.

These amendments apply to accounting periods beginning on or after 1 January 2024. (Earlier application is permitted for accounting periods that begin before 1 January 2024 but have not ended or do not end before 15 June 2023).

What are the new requirements?

Tier 1 entities will be required to disclose the fees incurred for services received from its audit or review firm, and a description of each service, using the following specified categories:
  • Audit or review of the financial report
  • Other non-audit and non-review services:
    • Audit or Review Related Services
    • Other Assurance Services and Other Agreed-Upon Procedures Engagements
    • Taxation Services
    • Other Services
Tier 2 entities have reduced disclosure requirements and are required to disclose:
  • The total fee for the audit or review of the financial statements; and
  • The total fees for any other services together with a general description of those services.


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

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