Tier 1 and Tier 2

Find out more about Tier 1 and Tier 2 standards and where to find further information. 

Charities Services' main focus is on supporting Tier 3 and Tier 4 organisations, which make up around 97% of the Charities Register and which are likely to have less resource available for an accountant.

Refer to the External Reporting Board's (XRB) website (external link) for more information about the standards and further guidance. 

Refer also to the Appendix of the Chartered Accountants Australia New Zealand's (CAANZ) "New Charity Reporting - One Year On [PDF, 202 KB]" report for additional resources available for Tier 1 and 2 charities.


Tier 1 & 2 charities must prepare financial statements in accordance with generally accepted accounting practice (GAAP). Summarised financial statements do not meet the requirements of GAAP, and therefore only full sets of financial statements should be submitted to Charities Services.

Example Financial Reports

Comprehensive Care (Tier 1)

Comprehensive Care PHO provides and supports general health care services through its own team and a network of General Practices, for a wide section of local communities. More specifically, their health care programmes include supporting and educating people whose lives are impacted by chronic health conditions including diabetes, heart disease, mental health issues, and asthma.
Winner of the Tier 1 category of the inaugural Chartered Accountants Australia New Zealand charity reporting awards, Comprehensive Care PHO has done an excellent job in preparing their Annual Report for the year ended 30 June 2017. In particular, their report is well designed providing a clear picture of what they have done throughout the year. This is reflected both in the financial and non-financial information reported as well as in the images used.
View the Comprehensive Care Annual Report [PDF, 1.1 MB]

The Royal New Zealand Ballet (Tier 2)

The Royal New Zealand Ballet does exactly what it says on the tin, preserving ballet as an art and educating the public of its merits by providing high quality performances. The ballet performs both nationally and around the world.
Winner of the Tier 2 category of the inaugural Chartered Accountants Australia New Zealand charity reporting awards, their Financial Statements demonstrate that you don’t need to be the largest charity to provide a professional looking report. They provide an unbiased assessment of their service performance including both positive and negative variances from their forecasts. Key information has been creatively displayed in a format that is easy to understand for the reader.
View the Royal New Zealand Ballet Annual Report [PDF, 8.2 MB]

Paralympics New Zealand (Tier 2)

Paralympics New Zealand is a Tier 2 organisation dedicated to supporting disabled people in participating in sports at regional, national, and international levels. We liked the way that they have included a summary financial report directing readers to the key elements of their financial statements as well as providing other useful information for the reader. We also liked the clear and thorough reporting of value in kind transactions.
View the Paralympics New Zealand Financial Report [PDF, 6.5 MB]

Malaghan Institute (Tier 2)

Malaghan Institute is a Tier 2 charity which uses contestable grants and donations to conduct research into the nature , origins and causes of disease. They currently have key focuses on cancer, asthma and allergies, and nutrition. This is a great example of disclosure of the impact of the transition to the new reporting standards which clearly illustrates the quantitative adjustments made to the financial statements.
View the Malaghan Institute of Medical Research Financial Report [PDF, 676 KB]