News and Updates

Changes to financial reporting requirements for small and medium companies

The government has recently announced proposed changes to the financial reporting obligations for small and medium-sized companies. Non-issuer companies who do not meet the definition of large (the definition of large is: either annual revenue of more than $30 million, or assets of more than $60 million) will no longer be required to prepare general purpose financial reports under the Companies Act. Instead they will need to prepare special purpose financial reports for tax and other purposes.

The changes will reduce the number of companies required to prepare general purpose financial reporting (GPFR) from 460,000 to less than 10,000, and is expected to cut business compliance costs by $90 million a year.

See the Ministry of Economic Development website for details of this and other changes to the financial reporting framework.

A Financial Reporting Amendment Bill outlining these changes will be introduced into Parliament in 2012, with a view to enactment in mid-2013.

23 September 2011

New rules to stop foreigners’ abuse of lax company law. The Companies Office has deregistered 1,800 “shell” firms and the government will tighten up the rules to prevent foreigners from using locally-registered companies as vehicles for international fraud.

08 September 2011

Legislation passed in December 2010 creates a new tax entity known as the look-through company or LTC. LTC’s coming into existence is very recent, just on or after 1 April 2011.

15 May 2011

The Government is to tighten requirements around company directors and company registration, Commerce Minister Simon Power has announced.

21 September 2010 (more info here http://www.beehive.govt.nz/release/government-tightens-rules-around-companies)

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