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New Zealand Businesses Could Face New Financial Reporting Standards

Companies in New Zealand could soon have new financial reporting standards.

Businesses in New Zealand may soon have a new set of financial reporting standards to follow if a new proposal from Commerce Minister Craig Foss goes through, according to The National Business Review.

The new bill, dubbed simply the Financial Reporting Bill, would replace 1993's Financial Reporting Act, according to the source. Under the new rules, reporting standards would be streamlined by eliminating a number of extraneous obligations. Foss aims to remove requirements for non-issuer companies when it comes to general-purpose financial reports, allowing shareholders to decide if reports need to be prepared, the source said.

The country's external reporting board would also see a slight increase in authority under the proposal. That entity would have the authority to issue financial reporting standards governing a variety of industries. One of the main issues surrounds registered charities, which currently issue reports far below the typical standard due to a general lack of guidance, the Review reported.

In a statement quoted by the source, Foss said, "Cutting down on expensive and unnecessary reporting obligations will help build a productive and effective economy.”