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New Zealand law explained for everyone

Companies Act 1993

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

203: Recognition of financial reporting requirements of overseas countries

You could also call this:

“Overseas financial statements can be accepted if they meet similar standards”

The Registrar can decide if an overseas company’s financial statements meet New Zealand’s standards. If the Registrar thinks the company’s financial statements follow rules that are very similar to or just as good as New Zealand’s rules, they can say those statements are okay.

This applies to both individual company statements and group statements that include the overseas company and its subsidiaries. If the Registrar says the overseas statements are good enough, they will be treated as if they follow New Zealand’s accounting practices.

The Registrar will let the overseas company know if their financial statements or group financial statements are accepted. This means the company doesn’t have to make new statements just for New Zealand if their own country’s rules are close enough to what New Zealand wants.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320896.

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202: Group financial statements must be prepared, or

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

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204: Financial statements for overseas company must include financial statements for large New Zealand business, or

“Overseas companies with large NZ operations must report separate NZ financial statements”

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

203Recognition of financial reporting requirements of overseas countries

  1. Subsection (2) applies if the Registrar notifies an overseas company (A) that the Registrar is satisfied that—

  2. the financial statements of A comply with the requirements of the law in force in the country where A is incorporated or constituted; and
    1. those requirements are—
      1. substantially the same as those of this Act; or
        1. sufficiently equivalent, in relation to the quality of financial reporting they achieve, to the requirements of this Act.

        2. The financial statements must be treated as complying with generally accepted accounting practice.

        3. Subsection (4) applies if the Registrar notifies an overseas company (A) that the Registrar is satisfied that—

        4. the group financial statements of the group that comprises A and its subsidiaries comply with the law in force in the country where A is incorporated or constituted; and
          1. those requirements are—
            1. substantially the same as those of this Act; or
              1. sufficiently equivalent, in relation to the quality of financial reporting they achieve, to the requirements of this Act.

              2. The group financial statements must be treated as complying with generally accepted accounting practice.

              Compare
              Notes
              • Section 203: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
              • Section 203(1): amended, on , by section 22 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
              • Section 203(3): amended, on , by section 22 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).