2018 Amendments to XRB A1 Appendix A - When is an Entity a Public Benefit Entity?

The External Reporting Board (XRB) recently issued for comment a proposed standard on the definition of a Public Benefit Entity (PBE).

What is a ‘public benefit entity' (PBE)? The External Reporting Board (XRB) are proposing amendments that will help clarify ‘what a PBE is’; and provide more guidance when determining whether an entity is a PBE or a for-profit entity.

Most registered charities will be PBEs. In limited circumstances, a charity that raises funds for charitable purposes through business activities as its primary activity may have to report as a for-profit entity. The guidance gives some worked examples. The proposed changes are relevant to all tiers, and are open for public comment until March 29 on the XRB website (external link) .

The amendments only relate to how an entity is treated for accounting purposes. This does not impact on whether or not an entity meets the criteria to be a registered charity.