New Zealand adopted IFRS in 2002 with effect for accounting periods commencing on or after 1 January 2007 (with early adoption from 1 January 2005 permitted). In September 2006 the New Zealand Inland Revenue Department (IRD) and the New Zealand Treasury jointly issued an officials' paper to review the tax consequences of New Zealand adopting IFRS. The objective of this article is to review the officials' paper and to examine the key areas in New Zealand tax law that will be affected by the adoption of the IFRS.