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Companies Act 1993

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

205: Balance date of subsidiaries

You could also call this:

“Aligning financial year-ends for parent companies and their subsidiaries”

If you run a company or overseas company that has to follow section 202, you need to make sure that your subsidiaries have the same balance date as your company. This is unless you have good reasons not to do this.

If your subsidiary can’t have the same balance date as your company, its balance date must be earlier than your company’s balance date. This is important when you’re preparing group financial statements.

Remember, a balance date is the date that marks the end of a company’s financial year. It’s when the company’s financial accounts are prepared.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321100.

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

205Balance date of subsidiaries

  1. The board of a company or an overseas company that is required to comply with section 202 must ensure that, unless in the board's opinion there are good reasons against it, the balance date of each subsidiary of the company is the same as the balance date of the company.

  2. If the balance date of a subsidiary of a company or an overseas company referred to in subsection (1) is not the same as that of the company, the balance date of the subsidiary for the purposes of any particular group financial statements must be a date that precedes the balance date of the company.

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Notes
  • Section 205: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).