Financial Reporting Bill passes second reading

A Bill that removes the requirement for smaller companies to produce complex financial statements has passed its second reading in Parliament.

The Financial Reporting Bill allows shareholders of small and medium-sized companies to decide whether the company must prepare financial statements says Commerce Minister Craig Foss.

“More than half a million companies are registered in New Zealand and all of them – regardless of their size – are currently required to prepare financial statements.

“For small and medium-sized companies this can be an expensive and unnecessary exercise. This Bill will remove this requirement and allow small and medium-sized companies to direct their resources where the need is greatest – growing their business,” says Mr Foss.

The Bill also improves the quality of financial reporting by charities and allows the External Reporting Board to issue accounting standards for registered charities.

“Progressing the Financial Reporting Bill is an important part of the Government’s Business Growth Agenda to grow New Zealand’s capital markets,” says Mr Foss.