Companies Act 1993

Accounting records and financial reporting - Financial reporting - Preparation of financial statements

200: Application of preparation provisions

You could also call this:

“Which companies must prepare financial statements”

This part of the law tells you which companies need to follow the rules about preparing financial statements. You need to follow these rules if you are:

  • A large company
  • A company that is a public entity
  • A large overseas company
  • A company with 10 or more shareholders (unless you’ve chosen not to follow these rules)
  • A company with fewer than 10 shareholders (if you’ve chosen to follow these rules)

If your company has subsidiaries (other companies it owns), you don’t need to follow one of these rules (section 201). Instead, you’ll need to follow a different rule (section 202).

There’s also a special case where you don’t have to follow section 201. This applies if your company:

  1. Doesn’t have any subsidiaries
  2. Is owned by another company that is registered in New Zealand or under Part 18 of this law
  3. Is included in the financial statements of the company that owns you
  4. Hasn’t chosen to follow section 201

In this case, you don’t need to prepare separate financial statements because you’re already included in your parent company’s statements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320893.

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Part 11 Accounting records and financial reporting
Financial reporting: Preparation of financial statements

200Application of preparation provisions

  1. Sections 201 and 202 apply to—

  2. every large company; and
    1. every company that is a public entity; and
      1. every large overseas company; and
        1. every other company with 10 or more shareholders unless the company has opted out of compliance with the provision in accordance with section 207I; and
          1. every other company with fewer than 10 shareholders if the company has opted into compliance with the provision in accordance with section 207K.
            1. However, section 201 does not apply to a company or an overseas company in relation to a balance date if the company or overseas company has, on that date, 1 or more subsidiaries (see section 202).

            2. Further, section 201 does not apply to a company or an overseas company (A) in relation to a balance date if,—

            3. on the balance date, A has no subsidiaries but is a subsidiary of a body corporate (B) that is—
              1. incorporated in New Zealand; or
                1. registered or deemed to be registered under Part 18; and
                2. group financial statements in relation to a group comprising B, A, and all other subsidiaries of B that comply with generally accepted accounting practice are completed in relation to the balance date under this Act or any other enactment; and
                  1. A has not opted into compliance with section 201 as referred to in subsection (1)(e).
                    Notes
                    • Section 200: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                    • Section 200(3): inserted, on , by section 20 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).