The New Zealand Institute of Chartered Accountants (NZICA) has welcomed the Minister of Commerce's announcement that all accounting and auditing standards setting responsibilities are to be consolidated within the new External Reporting Board (XRB).

"These proposed arrangements will provide a more efficient process for the setting of standards for New Zealand. The current arrangements are not sustainable in the long-term as they rely on the voluntary expertise of our members," said Terry McLaughlin, Chief Executive, New Zealand Institute of Chartered Accountants.

"Our members have been asking for this change and it will bring us in line with international best practice for accounting and auditing standards setting."

"I would like to acknowledge the work of all those who have contributed to our standards setting role. We are highly regarded internationally for our accounting expertise and personnel," said Mr McLaughlin.

The XRB will be the successor crown entity to the Accounting Standards Review Board and is expected to come into existence in 2011. NZICA has been working closely with the Government on this change as part of a wider review of New Zealand's financial reporting framework.

"This change will give us more opportunities to provide advice to members on their organisations' reporting requirements. NZICA will produce good practice guidelines for the many smaller entities that will no longer need to follow the financial reporting standards to assist them to provide useful financial reports."

"We share the Government's desire for a financial reporting system that is clear, consistent, provides what external users want and, most importantly, does not impose significant costs on entities," said Mr McLaughlin.