Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/20/2014

New Zealand - New financial reporting for small, medium-sized companies 

March 20:  New Zealand’s government introduced a new minimum financial reporting framework for small to medium-sized companies.

Defining companies

The minimum requirements, developed by Inland Revenue, will be relevant for those companies that are not subject to the Financial Reporting Act 2013.


It is expected that most small and medium-sized New Zealand companies will be affected, such as:


  • Companies with total assets of less than NZ $60 million or annual revenue of less than NZ $30 million
  • Some subsidiaries of large companies
  • Overseas companies and subsidiaries of overseas companies with revenues of less than NZ $10 million and assets of less than NZ $20 million

Minimum requirements

Companies need to take note of the minimum requirements, including:


  • A profit and loss statement and balance sheet, based on double entry accrual accounting principles, with accompanying schedules
  • Such schedules including a statement of accounting policies, fixed asset registers, taxable and accounting income reconciliation, and specified related-party disclosures

Read a March 2014 report prepared by the KPMG member firm in New Zealand: Taxmail - New financial reporting rules for small businesses




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