|Under Financial Reporting Act||Under Financial Markets Conduct Act|
|Entities with subsidiaries||Have to prepare both parent entity and group financial statements.||Do not have to prepare parent entity financial statements if they have subsidiaries – they will only need to prepare financial statements for their group.|
|Time frames||5 months for preparation and audit with an additional 20 working days for lodgement.||4 months for preparation, audit and lodgement.|
|Overseas companies use of GAAP||Allowed to use financial statements prepared under overseas GAAP if considered equivalent to NZ GAAP by the Companies Registrar.||Not allowed to use financial statements prepared under overseas GAAP – unless specified in an exemption notice.|
|Public accountability designation||All issuers are considered are publicly accountable and must report using full NZ GAAP eg, NZ IFRS.||FMC reporting entities will be designated as having higher public accountability or not. Those that do not have higher public accountability may be able to report using reduced disclosure standards.|
If you are a company incorporated outside New Zealand, you will also need to prepare, have audited and lodge financial statements for your New Zealand business (if any) that complies with generally accepted accounting practice in New Zealand.
We can vary the reporting obligations of FMC reporting entities using exemption notices and our public accountability variation power. For example, we have put in place exemptions that provide for:
For more details or to see if you qualify, see our financial reporting exemptions section.
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