Financial Reporting Law
The Financial Reporting Act was enacted in 1993 as part of a wider package of company law reform. The current review was driven by the decision by the Accounting Standards Review Board to adopt International Financial Reporting Standards (IFRS).
A further issue to take into account is the trans-Tasman dimension. In particular, Hon Peter Costello, Australian Treasurer, and Hon Dr Michael Cullen, New Zealand Minister of Finance, jointly announced [link to Policy Advice Division of IRD website] the formation of a Trans-Tasman Accounting Standards Advisory Group [link to ASRB website] in January 2004.
The Review has been split into three parts. The first part, released in March 2004, considered the financial reporting structure in New Zealand - that is, answering the issue of "who is required to report?" Submissions were due by 14 May 2004, copies of which were released on 14 July 2004 along with a summary.
The second part was released in November 2004. It covers both aspects of the Financial Reporting Act not previously considered, as well as a revised proposal on who should provide financial reports that takes into account concerns raised in relation to the first discussion document.
The third part, focusing mainly on auditor regulation issues will, subject to government approval, be released later in 2006.
Two sets of government decisions have been made to date.
On 8 August 2005, then Minister of Commerce, Hon Pete Hodgson, announced that the government has decided not to require large, non-public companies to file their financial reports with the Registrar of Companies. This decision relates only to companies that are not issuers of securities.
In December 2005, Minister of Commerce Hon Lianne Dalziel announced a set of decisions arising out of the first two parts of the review.
Documents
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Media Statements
Media Statements relating to the Financial Reporting Act Review.
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Cabinet Papers
Cabinet Papers relating to the Financial Reporting Act Review.
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Regulatory Impact and Business Compliance Cost Statement: Review of the Financial Reporting Act 1993
[ Published 19 December 2005 ]
This Regulatory Impact and Business Compliance Cost Statement discusses the options, along with benefits and costs, of the Review of the Financial Reporting Act 1993
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Part I: The Financial Reporting Structure
This page provides an overview of the first part of the Ministry's Review of the Financial reporting Act, which relates to the Financial Reporting Structure in New Zealand.
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Part II
Part II of the Review of the Financial Reporting Act covers aspects of the Financial Reporting Act not previously been considered, including the institutional arrangements for financial reporting, enforcement mechanisms and auditing standards.
Contact
Geoff Connor
Phone: 04-474 2914
Email: financialreporting@med.govt.nz
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