Changes to financial reporting framework
On 14 September 2011, the Hon Simon Power Minister of Commerce announced a number of changes to the financial reporting framework. The key changes are as follows:
- Small and medium sized companies that are not issuers will no longer have to prepare general purpose financial reports. Likely introduction mid 2013
- The External Reporting Board (XRB) will set financial reporting standards for registered charities and any other not-for-profit and public entities that have reporting obligations. The timeframe for likely introduction is mid 2013 for most public benefit entities, with the exception of not-for-profits to be introduced in mid-2014. The details of this proposal are open for your consultation.
View more information about the changes
The proposed changes explained
This is the first in a series of regular updates on proposed changes to the financial reporting framework by the NZICA Technical Services Team. The changes announced on the 14 September are detailed in the XRB position and consultation papers, and have been further summarised by the Technical Services Team in two tables:
Each table provides a comparative view of the current and proposed financial reporting, filing and audit obligations for each entity. Areas of the tables highlighted in red indicate where NZICA will be working with members to produce a set of high quality guidelines. These guidelines will be developed for use in the preparation of annual financial statements by entities that will have no statutory obligation to produce general purpose financial statements under the changes.
In addition to the above tables, a more detailed commentary was provided in the October Journal.
The Technical Services team has also recorded a webinar on the Proposed Changes to NZ Statutory Financial Reporting Framework.
Your feedback is welcomed - take the survey
Further to these resources, you are invited to provide us with feedback on the framework in a survey designed to collect your views. This survey and the information of a SME/SPFR working group will provide the basis of the guidelines developed.
Contact our team
This is a significant change and as such we’ll be working hard to ensure a smooth a transition for you and for New Zealand’s many small and medium businesses.
If you have questions about the proposed changes or how to submit your feedback, please contact the Technical Services Team Technical.ServicesTeam@nzica.com.
Financial Reporting Framework for New Zealand SMEs
NZICA is developing financial reporting guidelines for for-profit entities SMEs. A working group has been established to provide feedback to NZICA as the guidelines are developed. NZICA is seeking the views of members on the overall approach taken on the framework and we invite you to participate.
Please read the full article appearing in the March Journal.
Press release from Minister Power
NZICA’s media statement
Ministry of Economic Development Cabinet papers