Radical reforms supported

Press Release – Institute of Chartered Accountants

The New Zealand Institute of Chartered Accountants (NZICA) has thrown the weight of its 32,000 members behind proposals for a wave of reforms to New Zealand’s financial reporting system. “Improvements to New Zealand’s financial reporting framework …
For immediate release 30 September 2009
Media Release:

Radical reforms supported

The New Zealand Institute of Chartered Accountants (NZICA) has thrown the weight of its 32,000 members behind proposals for a wave of reforms to New Zealand’s financial reporting system.

“Improvements to New Zealand’s financial reporting framework are something our members have been asking for for many years. NZICA has been working closely with the Government for the past two years to address this – we therefore welcome the proposals put forward,” says NZICA Chief Executive Terry McLaughlin.

The Ministry of Economic Development and the Accounting Standards Review Board today released a pair of discussion papers that between them could radically reshape New Zealand’s financial reporting landscape. Entitled The Statutory Framework for Financial Reporting and Proposed Application of Accounting and Assurance Standards under the Proposed New Statutory Framework for Financial Reporting, the documents mirror moves international moves to improve the quality of financial reporting.

Among the proposed changes are reduced reporting requirements for many small and medium-sized businesses (SMEs), a category that includes around 90% of all enterprises in the country, and clarification and some simplification of the reporting requirements for not-for-profit, private and public sector entities. NZICA believes it is important that compliance costs are kept to a minimum.

The proposals have the potential to align New Zealand’s reporting standards more closely with those of Australia.

“As business advisors and business leaders, chartered accountants have an interest in ensuring investors, companies and the public have access to the best possible financial information,” McLaughlin says.

“We fully support changes that will enable the users of financial reports to make good decisions.”

The discussion documents can be downloaded from:
MED website: www.med.govt.nz/templates/MultipageDocumentTOC____41975.aspx
ASRB website: www.asrb.co.nz

ENDS

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