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Companies Act 1993

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

202: Group financial statements must be prepared

You could also call this:

“Companies with subsidiaries must prepare group financial statements within set timeframes”

If you run a company or overseas company that has one or more subsidiaries, you need to prepare group financial statements. You must do this within 5 months after your company’s balance date. These statements need to follow generally accepted accounting practice.

You must complete these statements for your group and balance date. Two directors of your company need to sign and date them. If your company only has one director, that director can sign.

However, you don’t need to prepare group financial statements if:

  1. Your company is a subsidiary of another company that is based in New Zealand or registered here.
  2. That other company already prepares group financial statements that include your company and all its other subsidiaries.
  3. These statements follow generally accepted accounting practice and are completed for the same balance date under this or another law.
  4. Your company hasn’t chosen to follow this rule anyway.

Remember, if you’re unsure about any of these rules, you should ask for help from someone who knows about company law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320895.

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“Companies must create and sign accurate financial reports within set timeframes”

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

202Group financial statements must be prepared

  1. Every company or overseas company to which this section applies (A) that has, on the balance date of A, 1 or more subsidiaries must ensure that, within 5 months after that balance date, group financial statements that comply with generally accepted accounting practice are—

  2. completed in relation to that group and that balance date; and
    1. dated and signed on behalf of A by 2 directors of A, or, if A has only 1 director, by that director.

      1. Group financial statements are not required under subsection (1) in relation to a balance date if,—

      2. on the balance date, A 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 that balance date under this Act or any other enactment; and
            1. A has not opted into compliance with this section as referred to in section 200(1)(e).

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              Notes
              • Section 202: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
              • Section 202(2): replaced, on , by section 21 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).