New Zealand

New financial reporting framework: Impact on specific entities 

 

Entity type

Preparation

Audit

Registration/ filing/ distribution

Summary of impacts/ key changes

Issuers - all entity types

Issuers - all entity types

General Purpose Financial Reporting

(refer to XRB tiers)

Audit 

(cannot opt out)

File/ Register
  • No change
  • All statutory financial reporting obligations (for issuers) will be in the Financial Markets Conduct Act 2011

Companies - non-issuers

Large companies General Purpose Financial Reporting
(refer to XRB tiers)
Audit  (but may opt out, unless the constitution of the company expressly prevents this)
File/ Register

(but only if 25% or more are owned overseas)

  • Currently, unanimous consent is required from all shareholders to opt out of audit.
  • New opt-out threshold is set at 95% majority
Large overseas company General Purpose Financial Reporting
(refer to XRB tiers)
Audit  (cannot opt out)
 File / Register  No change
Non-large companies (with 10 or more shareholders) General Purpose Financial Reporting (unless opt out of GPFR) Audit

(but may opt out)

No Filing / Registering (unless entity is a subsidiary of an overseas company & the entity itself prepares GPFR)
  • Every company is currently required to prepare and provide audited accounts, (except if the entity is non-active or exempt.)
  • Opting out requires  95% majority 
  • Filing/ registration of overseas companies now restricted to only  large entities
Non- large companies (with fewer than 10 shareholders) Special Purpose Financial Reporting (except if opted into GPFR)

No Audit 

(but may opt in)

No Filing/ Registering (unless entity is a subsidiary of an overseas company & the entity itself opted into GPFR)
  • Opting in only requires 5% voting shares
  • Filing/ registration of overseas companies now restricted to only  large entities

Partnerships

Large limited partnerships General Purpose Financial Reporting (refer to XRB tiers)

Audit

(but may opt out)

No filing (due to commercial confidentiality and privacy)

Distribute to all partners

Under the new amendments only large limited partnerships will have GPFR statutory obligations New requirement for financial statements to be audited by a qualified auditor  (unless LP opts out)
Non-large limited partnerships Special Purpose Financial Reporting (refer to the Chartered Accountants Australia and New Zealand templates)

No Audit 

(but may opt in, also depends on partnership agreement)

No filing or distribution

(but depends on the partnership agreement) 

No longer have any requirement to prepare financial statements  
Large unlimited Partnerships Purpose Financial Reporting (refer to XRB tiers) Audit (but may opt out) No filing or distribution (but depends on the partnership agreement) There is currently no statutory financial reporting obligations Large partnerships will now have GPFR statutory obligations
Non-large unlimited partnerships Special Purpose Financial Reporting (refer to the Chartered Accountants Australia and New Zealand templates) No Audit  No filing or distribution No change 

Charities 

Specified non-profit entity (operating payments of $40,000 or more) General Purpose Financial Reporting (refer to XRB tiers) No Audit  File/ Register (with Registrar of Charities)  There are currently no financial reporting standard to govern preparation.  New rules require NZ GAAP compliance.
Other charities Either: General Purpose Financial Reporting OR Simple Format Reporting No Audit  File/ Register (with Registrar of Charities New preparation and filing requirements  

Retirement villages

Retirement Village (issuers) -       FMC reporting entity General Purpose Financial Reporting (refer to XRB tiers) Audit

File/ Register

(with Registrar of Retirement Villages)

No change
Retirement Village (non issuers) General Purpose Financial Reporting (refer to XRB tiers) Audit File/ Register (with Registrar of Retirement Villages) May qualify for a lower tier of (XRB) reporting.  No longer deemed issuers.

Maori Entities 

Specified non-profit entity (operating payments of $40,000 or more) General Purpose Financial Reporting (refer to XRB tiers) Audit

File/ Register

 (with Maori Land Court Registrar)

Audit will have to be conducted by a ‘qualified’ auditor - rather than the current requirement of any ‘chartered accountant’
Other Maori incorporations Either: General Purpose Financial Reporting OR Special Purpose / Simple Format  Reporting

No Audit 

(but may opt into an audit or review, if shareholders resolve by a special resolution)

File/ Register

(with Maori Land Court Registrar)

New preparation and filing requirements

Friendly Societies and Credit Unions 

Friendly Societies that is a: Specified non-profit entity (operating payments of $40,000 or more) General Purpose Financial Reporting (refer to XRB tiers)   May opt out– provided it is not a  large entity with > $30M operating expenditure Audit

File/ Register (with the Registrar of Friendly societies)  

 

Distribute (on application by a member)

Currently there is only requirement to prepare financial statements  – but no statutory obligations for GAAP compliance Specified non-profit entities now have GAAP compliance obligations – (depending on size, may opt out)
Other Friendly societies or branches   Either: General Purpose Financial Reporting OR Simple Format Reporting (refer to XRB tiers)

No Audit  (unless its own rules require an auditor to be appointed)

File/ Register (with the Registrar of Friendly societies)  

Distribute (on application by a member)

Currently, exempt from appointing a ‘qualified’ auditor. New amendments -small societies or branches do not have to appoint an auditor at all.  

Credit Unions General Purpose Financial Reporting (refer to XRB tiers)   Audit

File/ Register  

 

Distribute (on application by a member

All credit munitions will be required to comply as an issuer.
 

Contact us

Simon Lee

Simon Lee

Technical Director - Accounting Advisory Services

+64 4 816 4678

Accounting Advisory Services

We can help with complex financial reporting regulations, optimise relevant reporting processes and incorporate new requirements.