Financial Reporting: Governed by the Financial Reporting Act 2013
The Financial Reporting Act 2013 establishes the External Reporting Board (XRB) as the authority responsible for financial reporting standards. Key aspects include:
External Reporting Board (XRB):
The XRB is tasked with issuing financial reporting standards and ensuring these standards align with global practices.Financial Reporting Strategy:
The XRB develops a comprehensive financial reporting strategy to guide the preparation and presentation of financial statements.
Tax Reporting: Governed by the Tax Administration Act
For tax reporting purposes, the Tax Administration Act 1994 provides a different framework. Key features include:
Order in Council:
The IRD relies on Orders in Council to set specific tax reporting requirements. These are regulations issued by the Governor-General on the advice of the Executive Council.IRD Requirements:
The IRD has separate guidelines for tax-related financial statements, focusing on compliance with tax laws and accurate reporting of taxable income.Record-Keeping Obligations:
Businesses must adhere to record-keeping requirements that facilitate tax reporting and audits.
Key Distinction: Financial vs. Tax Reporting
While financial reporting is broader and aligns with international standards, tax reporting is specific to the requirements of New Zealand’s tax system.