A discussion document that substantially reviews the financial reporting obligations for many businesses has been released by Commerce Minister Simon Power today.

Among other things, the document proposes to reduce compliance costs for the vast majority of small and medium-sized companies.

"A comprehensive review of New Zealand's financial reporting landscape is long overdue," Mr Power said.

"We are really going back to first principles and asking what kind of financial information, and what kind of assurance, do the users of financial reports need.  In this way we want to develop a standard framework that is consistent, clear and, most importantly, helps reduce compliance costs for businesses."

The document looks at the needs of users and preparers of financial reports.

"New Zealand has various statutes imposing sometimes inconsistent obligations on entities.  This document helps address those inconsistencies."

The review also looks at consolidating the standard-setting and approval processes for financial reporting and assurance into one body.

"This will not only ensure greater efficiency within New Zealand but will also harmonise with the Australian system - an important consideration given that a key trans-Tasman goal is to have a single set of reporting standards for businesses operating in both countries."

A companion discussion document prepared by the Accounting Standards Review Board has also been released.  It examines the accounting and auditing standards that will be required under the new framework.

Submissions close on 29 January 2009.  A copy of the discussion document is available at http://www.med.govt.nz/templates/StandardSummary____187.aspx.

The Accounting Standards Review Board discussion document can be found at www.asrb.co.nz.