Page 25

Is the company an FMC reporting entity?1

GPFS: General purpose financial statements (i.e. financial statements prepared in accordance with generally accepted accounting practice). For FMC reporting entities, GPFS must be prepared under the requirements of New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”); all other for-profit companies that must prepare GPFS can do so under the requirements of the NZ IFRS Reduced Disclosure Regime (“NZ IFRS RDR”). NZ IFRS RDR has the same recognition and measurement requirements as full NZ IFRS, but provides considerably reduced disclosure requirements. GPFS of an overseas company may be the financial statements of that company that comply with the laws of the country in which it is incorporated (subject to the Registrar’s satisfaction).

YES

Within 4 months of balance date prepare GPFS, have them audited and file them.

NO

What is the ownership of the company?

Overseas company with a branch in NZ

Subsidiary of an overseas company2

25% or more overseas owned3

Less than 25% overseas ownership4

Is the overseas company large (i.e. revenue > $10m or assets > $20m)?5

Is the company large (i.e. revenue > $10m or assets > $20m)?6

Is the company large (i.e. revenue > $30m or assets > $60m)?7

Is the company large (i.e. revenue > $30m or assets > $60m)?8

YES

YES

YES

NO

YES

NO

NO

Within 5 months of balance date prepare GPFS have them audited and file them.9

NO

Within 5 months of balance date, prepare GPFS, have them audited and file them.10

How many shareholders does the company have?

10 or more

Within 5 months of balance date prepare GPFS and have them audited (unless opt out). No requirement to file.12

Within 5 months of balance date prepare GPFS and have them audited (unless opt out). No requirement to file.11

9 or less

No requirement to prepare GPFS, be audited or file. Must prepare GPFS and be audited within 5 months of balance date if required by 5% or more of shareholders. Must meet Inland Revenue requirements.13

NOTES 1. T he term “FMC reporting entity” is defined in the Financial Markets Conduct Act 2013. FMC reporting entities include issuers of regulated products under the Financial Markets Conduct Act 2013, listed issuers, operators of licensed markets, recipients of money from a conduit issuer, registered banks, licensed insurers, credit unions and building societies. 2. A company is a subsidiary of an overseas company if it is more than 50% owned by an overseas company (including a subsidiary of an ultimate overseas company). 3. 25% or more overseas ownership means 25% to 50% owned by an overseas company or a subsidiary of an overseas company, or 25% or more owned by overseas individuals. 4. Less than 25% overseas ownership means that at least 75% of shareholders are based in NZ. 5. For an overseas company trading in NZ, size is based on the overseas company (and its subsidiaries), not just on the NZ operation. An overseas company is large if it and its subsidiaries have revenue in excess of $10 million or assets in excess of $20 million.† 6. For a NZ registered company that is a subsidiary of an overseas company, size is based on the NZ registered company (and its subsidiaries). A NZ registered company that is a subsidiary of an overseas company is large if it and its subsidiaries have revenue in excess of $10 million or assets in excess of $20 million.† 7. A company with 25% or more overseas ownership (but that is not a subsidiary of an overseas company) is large if it and its subsidiaries have revenue in excess of $30 million or assets in excess of $60 million.† 8. A company with less than 25% overseas ownership (i.e. 75% or more NZ ownership) is large if it and

www.staplesrodway.co.nz

its subsidiaries have revenue in excess of $30 million or assets in excess of $60 million.† 9. If the NZ business of an overseas company is large, the financial statements must include, in addition to the financial statements of the overseas company, financial statements for its NZ business. 10. A company is not required to audit and file if it has more than 25% overseas ownership and is a subsidiary of a NZ company which files audited group financial statements, or is a wholly-owned subsidiary of a NZ company (or a large overseas company) which files audited group financial statements. 11. A large company with less than 25% overseas ownership must prepare GPFS and have them audited, but can opt out of the requirement for audit with 95% shareholder approval (which means that 95% of voting shares must be cast in favour of the proposal to opt out). If GPFS are audited, they must be filed. 12. Non-large companies with 10 or more shareholders must prepare GPFS and have them audited, but can opt out of both requirements with 95% shareholder approval (which means that 95% of voting shares must be cast in favour of the proposal to opt out). If the company opts out of preparing GPFS, it must meet Inland Revenue’s minimum financial reporting requirements. 13. Non-large companies with fewer than 10 shareholders are not required to prepare GPFS or have them audited, but must do so if at least 5% of shareholders require them to. Where GPFS are not prepared, Inland Revenue’s minimum financial reporting requirements must be met. † As at the balance date of each of the two preceding accounting periods.

NUMBERS Autumn 2015 • 23

Numbers mag autumn 2015 issuu  

Hawkins Profile | IRD Investigations | NZIPOs | Tax Issues for Trustees | Employing Seasonal & Casual Labour | Improving Workplace Health &...

Numbers mag autumn 2015 issuu  

Hawkins Profile | IRD Investigations | NZIPOs | Tax Issues for Trustees | Employing Seasonal & Casual Labour | Improving Workplace Health &...