The new financial reporting regime is complex and involves changes to filing, preparation and audit requirements for both overseas and New Zealand-owned businesses. Depending on your circumstances, the new accounting framework could mean compliance with new standards and disclosure requirements or that general purpose financial statements are no longer required. Find out how the changes affect your business.
All non-large New Zealand and Overseas companies with 10 or more shareholders are required to prepare general purpose financial statements and have these audited, but may opt-out (of preparation and audit, or just audit requirement) if at least 95% of the shareholders vote in favor of opting out.
Similarly large* New Zealand companies (with less than 25% overseas ownership) may opt-out of the audit requirement if at least 95% vote in favour of opting out. Large* companies cannot opt-out of preparing general purpose financial statements.
Resolutions must be passed at the earliest of:
All companies that are not 'large', and that have fewer than 10 shareholders don't have to prepare general purpose financial statements or have an audit. However, they may opt-in to the regime if shareholders of the company holding at least 5% of the voting shares pass a resolution to comply.
'Large' companies are defined as:
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