New “large” definition for for-profit reporting entities is in effect

In March 2026 we released an article highlighting changes to the application of the “large” definition for for-profit reporting entities, as a result of changes introduced by the Regulatory Systems (Economic Development) Amendment Act 2025 (the ‘Act’).

These changes are effective reporting dates beginning on or after 29 September 2025, therefore for entities:

• With a 31 December year end: From 1 January 2026
• With a 31 March year end: From 1 April 2026
• With a 30 June year end: From 1 July 2026

Therefore, for-profit entities that subsequent to the applicable dates above, have:

1. Acquired another entity, or
2. Been acquired by another entity (in particular, an overseas entity) subsequent to the applicable dates above.

These changes may be significantly consequential to the financial statements that you may have to prepare for you forthcoming financial year-end (rather than the previous 2-year grace period), including potentially a requirement to step-up to adopt NZ IFRS financial statements.

Therefore, for entities where (i) and/or (ii) applies it is recommended that the impacts of the change are considered as early as possible, rather than being left to reporting date (as the step-up to adopt NZ IFRS may require significant consideration and the restatement of prior period results).

Need help?

Please contact our Financial Reporting Advisory team for further assistance on the changes to the “large” definition and the step-up to adopt NZ IFRS.

For more on the above, please contact your local BDO representative.