Accounting Alert - September 2012
Staying on top of developments
The Financial Reporting Bill has been introduced to Parliament, proposing significant changes to New Zealand’s financial reporting framework. As signalled in September 2011, these proposals:
- remove financial reporting requirements for most small and medium sized companies,
- introduce financial reporting requirements for registered charities and large partnerships,
- remove the obligation to prepare parent financial statements where group financial statements are prepared, and
- reduce the preparation time for financial statements from five months to three months.
A further change was included in the Bill allowing large New Zealand privately owned companies to opt out of appointing an auditor if passed by resolution approved by 95% of voting shareholders.
This alert also provides an update on the Financial Market Authority's (FMA's) final guidance note on Disclosing non-GAAP financial information, issued on 1 September 2012. The guidance note is largely consistent with the previous consultation draft, but now includes an illustrative profit announcement including the non-GAAP measure "underlying profit" as an aid for issuers.
In this issue:
- Financial Reporting Bill proposes changes to financial reporting requirements
- Final guidance note issued by the FMA on non-GAAP financial information
- New Publication – IFRSs in Your Pocket 2012