Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Good news for 95 percent of New Zealand companies

Good news for 95 percent of New Zealand companies

New financial reporting requirements coming into force tomorrow are a positive development for New Zealand small and medium businesses, says John Hodge, General Manager - Technical and Quality Assurance at the New Zealand Institute of Chartered Accountants (NZICA).

The new Financial Reporting Act means that up to 95 percent of New Zealand companies may no longer have to meet previously-prescribed financial reporting standards. Many will still have to produce accounts for the Inland Revenue Department.

Last month the IRD issued its minimum financial reporting requirements for these companies.

“Chartered Accountants are well placed to provide advice and information to their business clients to help them adapt to the new requirements,” says Mr Hodge.

“NZICA has contributed to the development of the new requirements, working with key Government agencies to provide policy input.”

NZICA is developing new, optional, reporting guidelines that will give small and medium New Zealand businesses the tools to easily and consistently record and manage the financial health of their businesses. These Special Purpose Financial Reporting guidelines will also be useful for companies when dealing with shareholders, boards, lenders and simultaneously meeting the IRD minimum requirements.

“The NZICA Small to Medium Enterprises (SME) guidance package will provide credible and flexible accounting guidance to preparing simplified financial statements” commented Mr Hodge.

The NZICA SME guidance package includes three sets of illustrative financial statements aimed at what NZICA views as the most common New Zealand SME industry groups. This package will be available from NZICA in the near future.

NZICA, in conjunction with the IRD and the External Reporting Board (XRB), delivered a series of roadshows around New Zealand during February and March. The purpose of the roadshows was to explain the recent changes to financial reporting resulting from the Financial Reporting Act.

NZICA is also developing an interactive Financial Reporting Tool that will provide further practical help to chartered accountants and their clients.

-Ends -

© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news