Business Update

Discussion document released on the review of the financial reporting framework

The document is based on a substantial review currently being undertaken by MED on the reporting obligations of reporting entities in New Zealand.  The overarching objective of the review is to reduce compliance costs for the majority of small and medium sized entities.

Accounting and auditing standards in New Zealand are inconsistent at times, as they currently stand.  This review looks at all aspects of financial reporting with the view of creating a consistent and coherent reporting framework.

The document also proposes changes to New Zealand’s financial and audit standard setting institutions.  The review suggests consolidating this work into one body for greater synergies and harmonisation opportunities with Australia.

The Accounting Standards Review Board (ASRB) has released a companion discussion document that outlines the accounting and auditing standards that will be required under the proposed framework.

The Ministry of Economic Development’s discussion document can be found on their website at www.med.govt.nz/templates/StandardSummary____187.aspx.

The Accounting Standard Review Board’s discussion document can be found on their website at www.asrb.co.nz.