The Commerce Select Committee has reported back on the Financial Reporting Bill with some recommended amendments to the Bill. A copy of the committee's report is available here.
The amendments proposed by the select committee are generally positive for businesses and include:
- an exemption for "non-active" entities as provided for under the Financial Reporting Act 1993 (the 1993 Act);
- simplification of the timing requirements for the preparation and registration of financial statements, and for entities that are not issuers (or other FMC reporting entities) an increase in the time period given to prepare financial statements from within three months to within five months of balance date;
- an exemption from audit requirements for "large" companies if the company is a wholly-owned subsidiary of a company that has complied with a requirement to lodge or register group financial statements with the Registrar of Companies; and
- a requirement for limited partnerships that are not large to comply with the financial statement preparation, audit and distribution obligations for an accounting period if partners (who together must have contributed at least 5% of the capital contributions of all the partners) require the limited partnership to comply.
Further details of the select committee's recommendations are available in our May 2013 client update: Some welcome amendments proposed for the Financial Reporting Bill.
The Bill is the latest stage in the review of New Zealand's financial reporting framework which commenced in 2009 and will replace the 1993 Act and amend a number of other statutes that contain financial reporting obligations for various entities. An overview of the key changes arising from the Bill is set out in our November 2012 client update: Submissions called on Financial Reporting Bill.