Unlisted firms' reporting burden may ease
Unlisted companies and charities could find their reporting burden lifted if recommendations from the parliamentary commerce select committee are passed into law as part of the Financial Reporting Bill.
The recommendations include lifting the reporting threshold on charities from $40,000 to $125,000, and extending the reporting deadline for private firms from three months to five.
The aim of the bill is to exempt smaller companies from producing complex financial statements, as well as easing the reporting requirements on overseas companies with operations in New Zealand.
"The changes will let small and medium-sized companies direct resources where the need is greatest - growing their business," Commerce Minister Craig Foss said.
The legislation, which forms part of the Government's Business Growth Agenda, has drawn fire from some quarters for watering down mandatory disclosures on foreign-owned firms.
All fully foreign-owned companies must file general purpose financial statements with the Companies Office, and companies that are at least 25 per cent foreign-owned must file accounts if they are above a certain size.
The Financial Reporting Bill seeks to lift the first requirement if revenues fall below a set level.
The bill has passed its first reading in Parliament, but there is no indication when it is likely to go back to the floor.