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Flashcards in Financial Reporting Act 2013 Deck (52):
1

_______________ and its enabling legislation, the Financial Reporting (Amendments to Other Enactments) Act 2013, came into force on 1 April 2014, replacing the Financial Reporting Act 1993.

The Financial Reporting Act 2013

2

The Financial Reporting Act 2013 and its enabling legislation, the Financial Reporting (Amendments to Other Enactments) Act 2013, came into force on __________, replacing the Financial Reporting Act 1993.

1 April 2014

3

The Financial Reporting Act 2013 and its enabling legislation, the Financial Reporting (Amendments to Other Enactments) Act 2013, came into force on 1 April 2014, replacing the _________________

Financial Reporting Act 1993

4

Two of the _______________ to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

most noteworthy changes

5

Two of the most noteworthy changes to the _______________ introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

Financial Reporting Act

6

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. ___________________ are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

Many small and medium-sized companies

7

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are _____________________ (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

no longer required to prepare general purpose financial reports

8

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (_________); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare __________; previously they had no
statutory requirement to prepare ____________.

GPFR

9

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare __________________ (SPFR).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

instead they may prepare special purpose financial reports

10


Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (___________).
2. Registered charities are now required to prepare GPFR; previously they had no
statutory requirement to prepare GPFR.

SPFR

11

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. _____________________________; previously they had no
statutory requirement to prepare GPFR.

Registered charities are now required to prepare GPFR

12

Two of the most noteworthy changes to the Financial Reporting Act introduced by the new
legislation are:
1. Many small and medium-sized companies are no longer required to prepare
general purpose financial reports (GPFR); instead they may prepare special
purpose financial reports (SPFR).
2. Registered charities are now required to prepare GPFR; ________________________________________.

previously they had no statutory requirement to prepare GPFR

13

For many companies, we are coming to the end of the first set of compliant financial statements under the new reporting regime. Changes to the financial reporting requirements means that for most ‘_______’ companies, audited general purpose financial statements are no longer required to be prepared, or filed with the New Zealand Companies Office However, this does not mean that these companies have no financial reporting obligations at all.

non-large

14

For many companies, we are coming to the end of the first set of compliant financial statements under the new reporting regime. Changes to the financial reporting requirements means that for most ‘non-large’ companies, audited general purpose financial statements are no longer required to be prepared, or filed with the __________________ However, this does not mean that these companies have no financial reporting obligations at all.

New Zealand Companies Office

15

For many companies, we are coming to the end of the first set of compliant financial statements under the new reporting regime. Changes to the financial reporting requirements means that for most ‘non-large’ companies, audited general purpose financial statements are no longer required to be prepared, or filed with the New Zealand Companies Office However, this ________ mean that these companies have no financial reporting obligations at all.

does not

16

The definition of a _______ company requires that certain thresholds are exceeded at balance date of each of the two preceding accounting periods. The thresholds vary depending on whether the company is New Zealand or overseas owned. This definition has led to some confusion for the financial reporting requirements of new entities that were not in existence for two previous accounting periods.

large

17

The definition of a large company requires that certain __________________. The thresholds vary depending on whether the company is New Zealand or overseas owned. This definition has led to some confusion for the financial reporting requirements of new entities that were not in existence for two previous accounting periods.

thresholds are exceeded at balance date of each of the two preceding accounting periods

18

The financial reporting obligations for _____ companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is no requirement to prepare or file audited general purpose financial statements unless 5% or more of the shareholders require the company to do so
• for companies with ten or more shareholders, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

new

19

The financial reporting obligations for new companies depends on the number of shareholders:
• ______________________, there is no requirement to prepare or file audited general purpose financial statements unless 5% or more of the shareholders require the company to do so
• for companies with ten or more shareholders, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

for companies with fewer than ten shareholders

20

The financial reporting obligations for new companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is ________________________________ unless 5% or more of the shareholders require the company to do so
• for companies with ten or more shareholders, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

no requirement to prepare or file audited general purpose financial statements

21


The financial reporting obligations for new companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is no requirement to prepare or file audited general purpose financial statements ______________________________
• for companies with ten or more shareholders, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

• unless 5% or more of the shareholders require the company to do so

22

The financial reporting obligations for new companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is no requirement to prepare or file audited general purpose financial statements unless 5% or more of the shareholders require the company to do so
• _____________________, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

for companies with ten or more shareholders

23

The financial reporting obligations for new companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is no requirement to prepare or file audited general purpose financial statements unless 5% or more of the shareholders require the company to do so
• for companies with ten or more shareholders, audited general purpose financial statements __________________________________________________________________
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, Inland Revenue’s minimum financial reporting requirements would still need to be met. This is an area that appears to have been overlooked by many companies.

• are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out

24

The financial reporting obligations for new companies depends on the number of shareholders:
• for companies with fewer than ten shareholders, there is no requirement to prepare or file audited general purpose financial statements unless 5% or more of the shareholders require the company to do so
• for companies with ten or more shareholders, audited general purpose financial statements are not required to be prepared or filed if 95% of the shareholders vote in favour of opting out
If an entity expects to become ‘large’ in the near future, it may be appropriate to comply with GAAP requirements from the beginning to minimise transition dis­ruptions between SPFS and GPFS once the entity becomes large. It is also important to review company constitutions, bank covenants or other legislative requirements (such as the Charities Act) to ensure that the entity does not have financial reporting and auditing obligations as a result of these. We have seen a number of SME constitutions require GAAP com­pliant financial statements.
In both cases, however, __________________________________. This is an area that appears to have been overlooked by many companies.

Inland Revenue’s minimum financial reporting requirements would still need to be met

25

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The ____________________________ (the Order) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are still required to be prepared under the Order. The only exemption is for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

Tax Administration (Financial Statements) Order 2014

26

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (___________) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are still required to be prepared under the Order. The only exemption is for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

The Order

27

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (the Order) provides that if ________________________________, they are still required to be prepared under the Order. The only exemption is for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

if financial statements are not required to be prepared under the Companies Act 1993

28


INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (the Order) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are ________________________. The only exemption is for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

still required to be prepared under the Order

29

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (the Order) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are still required to be prepared under the Order. ________________ is for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

The only exemption

30

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (the Order) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are still required to be prepared under the Order. The only exemption is ________________________. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from 1 April 2014.

for companies whose income and expenses are both less than $30,000

31

INLAND REVENUE MINIMUM FINANCIAL REPORTING REQUIREMENT
The Tax Administration (Financial Statements) Order 2014 (the Order) provides that if financial statements are not required to be prepared under the Companies Act 1993, they are still required to be prepared under the Order. The only exemption for companies whose income and expenses are both less than $30,000. Inland Revenue’s minimum financial reporting require­ments apply from income or accounting years that com­menced from ________________.

1 April 2014

32

Under the ___________________, financial reporting standard means a financial reporting standard issued by the Board under section 12; and includes an amendment to a financial reporting standard that is issued by the Board

Financial Reporting Act 2013

33

Under the Financial Reporting Act 2013, ___________________ means a ____________________ issued by the Board under section 12; and includes an amendment to a _____________________ that is issued by the Board

financial reporting standard

34

Under the Financial Reporting Act 2013, financial reporting standard means a financial reporting standard issued by the ___________ under section 12; and includes an amendment to a financial reporting standard that is issued by the ___________

Board

35

Under the Financial Reporting Act 2013, financial reporting standard means a financial reporting standard issued by the Board under ____________; and includes an amendment to a financial reporting standard that is issued by the Board

section 12

36

The Board referred to in _____________ of the Financial Reporting Act 2013 is the External Reporting Board (see section 11).

section 12

37

The Board referred to in section 12 of the ___________________ is the External Reporting Board (see section 11).

Financial Reporting Act 2013

38

The Board referred to in section 12 of the Financial Reporting Act 2013 is the External Reporting Board (see section 11).

External Reporting Board

39

Section 12 of the Financial Reporting Act 2013 sets out the _______________. These functions include issuing of financial reporting standards and auditing and assurance regulations.

functions of the Board

40

Section 12 of the Financial Reporting Act 2013 sets out the functions of the Board. These functions including __________________ and auditing and assurance regulations.

issuing of financial reporting standards

41

Section 12 of the Financial Reporting Act 2013 sets out the functions of the Board. These functions include issuing of financial reporting standards and __________________________.

auditing and assurance regulations

42

Under _____________________, an entity (other than an overseas company or a subsidiary of an overseas company) is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $60 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $30 million.

section 45 of the Financial Reporting Act 2013

43

Under section 45 of the Financial Reporting Act 2013, an entity (_________________________) is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $60 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $30 million.

other than an overseas company or a subsidiary of an overseas company

44

For the purposes of _________________________, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

section 45 of the Financial Reporting Act 2013

45

For the purposes of section 45 of the Financial Reporting Act 2013, an __________________ of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

overseas company or a subsidiary of an overseas company

46

For the purposes of section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is __________ in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

large

47

For the purposes of section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) _________________:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

exceed $20 million

48

Under section 45 of the Financial Reporting Act 2013, an _________________________ is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

overseas company or a subsidiary of an overseas company

49

Under section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as ___________________________, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

at the balance date of each of the 2 preceding accounting periods

50

Under section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods,___________________________________________:
(b) in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

the total assets of the entity and its subsidiaries (if any) exceed $20 million

51

Under section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) _____________________________, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

in each of the 2 preceding accounting periods

52

Under section 45 of the Financial Reporting Act 2013, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:
(b) in each of the 2 preceding accounting periods, the ______________________________________________.

the total revenue of the entity and its subsidiaries (if any) exceeds $10 million