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A Bill that overhauls financial reporting rules and cuts compliance costs for small and medium-sized companies has been introduced by Commerce Minister Craig Foss.
The Financial Reporting Bill was introduced to Parliament today. A Supplementary Order Paper has also been released.
“The Bill will cut the compliance burden faced by many of New Zealand’s small and medium-sized companies,” says Mr Foss
“These smaller companies shouldn’t necessarily have to produce the same complex financial statements that are required from large companies.”
The Bill also simplifies compliance obligations for charities, and includes a new power which allows the External Reporting Board to issue accounting standards for registered charities.
“This power will provide clarity for charities that are required to file financial statements. It will remove uncertainty, improve the quality of reporting and increase comparability between charities,” says Mr Foss.
The Bill repeals and replaces the Financial Reporting Act 1993.
“Cutting down on expensive and unnecessary reporting obligations will help build a productive and effective economy,” says Mr Foss.
The Supplementary Order Paper aligns breaches of financial reporting requirements for financial markets participants with the liability regime in the Financial Markets Conduct Bill.
The Bill and Supplementary Order Paper can be found at www.legislation.govt.nz/bill/government/2012/0042/latest/versions.aspx