The Financial Reporting Act which came into force on 1 April 2014 changes financial reporting obligations for most companies. Medium sized companies between $2 million and $30 million will have reduced compliance and smaller companies will be able to prepare simplified statements.
More importantly for most of you will be, what is required by IRD? … and this is yet to be determined. They are currently working through this and will be coming out with a statement of minimum requirements for tax purposes.
The proposals do not eliminate any of the responsibilities currently placed on directors under the Companies Act 1993. A company must always have accounting records that:
(a) correctly record and explain the transactions of the company
(b) will enable the financial position of the company to be determined with reasonable accuracy at any time.
We are very aware of the changes and will keep you up to date on how these may affect you! We understand that there is a lot of speculation out in the market place about how this will affect businesses and we want to assure you that we will keep you updated.
These changes do not affect any reporting for the 2014 financial year so will not have any affect until at least this time next year an possibly not until the 2016 financial year.
If you have any questions in the meantime feel free to contact Monteck Carter 09 273 3682. We also offer a free consultation session for all potential new clients.