Changes to New Zealand reporting and audit thresholds
The Financial Reporting (Inflation Adjustments) Regulations 2021 have been issued and increase various reporting and audit thresholds specified in legislation to account for inflation, including the meaning of:
- “Large” in section 45 of the Financial Reporting Act 2013.
- Assets increase from $60m to $66m and revenue increases from $30m to $33m for a New Zealand company.
- Assets increase from $20m to $22m and revenue increases from $10m to $11m for an overseas company
- “Specified not-for-profit entity” in section 46 of the Financial Reporting Act 2013.
- Total operating payments increase from $125k to $140k.
- “Large” in section 42D of the Charities Act 2005.
- Total operating expenditure increases from $1m to $1.1m.
- “Medium” in section 42D of the Charities Act 2005.
- Total operating expenditure increases from $500k to $550k.
These regulations come into force on 1 January 2022.
Please take note of these changes, as they may directly impact on your legislative financial reporting and audit requirements.
For more on the above please contact your local BDO representative.
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