Your company (including your look-through company) may need to prepare financial accounts for us. Your annual revenue and assets determine the minimum financial reporting requirements your company must meet.
Companies who prepare minimum financial reports
You can prepare your company’s financial statements to the minimum if in each of the last 2 accounting years:
- total income is $30 million or less, or
- assets are $60 million or less.
These levels apply to all companies in a group if its parent company is incorporated in New Zealand.
If your company is a subsidiary of a multi-national company, it must meet the minimum financial reporting requirements if in each of the last 2 accounting years:
- total income is $10 million or less, or
- assets are $20 million or less.
If your company is a subsidiary of a New Zealand company that prepares consolidated general-purpose financial reports, your financial statements must meet the minimum financial reporting requirements.
Companies who must prepare financial reports to a higher standard
Your company must prepare financial accounts to a higher standard if it:
- has an annual revenue of more than $30 million or assets of more than $60 million in each of the last 2 accounting years
- is a New Zealand subsidiary of a multi-national with total income of more than $10 million or assets of more than $20 million in each of the last 2 accounting years.
- is an issuer
- has ten or more shareholders (unless they opt out of reporting to a higher standard)
- has fewer than ten shareholders who opt in to reporting to a higher standard.
If you need to prepare financial statements to a higher standard you must prepare general purpose financial reports using the External Reporting Board (XRB) standards. You do not need to prepare separate financial accounts for us.
Small company reporting exemption
Your company does not have to prepare financial statements if during the income year it:
- was not part of a group of companies, and
- had not derived income of more than $30,000, and
- had not incurred expenditure of more than $30,000.
Your company will still need to keep:
- tax records to calculate taxable income, expenses and GST (if you're registered)
- employer records for employment-related taxes (if you’re an employer).
Non-active company reporting exemption
If you have declared that your company is non-active, you do not have to prepare financial statements. It also means that you do not file income tax and imputation returns.