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Companies Act 1993

Accounting records and financial reporting - Financial reporting - Financial reporting offences

207G: Financial reporting offences

You could also call this:

“Rules and penalties for company financial reporting in New Zealand”

If you run a company in New Zealand or an overseas company that operates here, you need to follow some important rules about financial reporting. These rules say that you must prepare financial statements correctly and on time. You also need to make sure these statements follow the right standards.

For New Zealand companies, you must complete and sign your financial statements within the time given in section 201. If your company is part of a group, you need to do the same for group financial statements as stated in section 202.

If you have an overseas company, you need to complete and sign your financial statements within 5 months after your balance date. This is explained in section 204.

All companies must have their financial statements audited as per section 207. You also need to register these statements as required by section 207E. New Zealand companies must also provide copies of financial statements prepared for tax purposes when asked, as stated in section 207F.

If you don’t follow these rules, your company can be fined up to $50,000. As a director of the company, you could also be punished as described in section 374(3). However, there are some ways directors can defend themselves against these charges, which are explained in section 376(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6041579.

Topics:
Business > Industry rules
Business > Fair trading
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207F: Shareholders may request copy of financial statements prepared for tax purposes, or

“Shareholders can ask for and receive tax-related financial statements”

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207H: Period during which company may opt in or opt out, or

“When companies can choose to follow or not follow certain rules”

Part 11 Accounting records and financial reporting
Financial reporting: Financial reporting offences

207GFinancial reporting offences

  1. This section applies if—

  2. a company or an overseas company is required to comply with section 201 and financial statements of the company or overseas company—
    1. are not completed and signed within the time specified in that section; or
      1. fail to comply with an applicable financial reporting standard; or
      2. a company or an overseas company is required to comply with section 202 and group financial statements of a group comprising the company or overseas company and its subsidiaries—
        1. are not completed and signed within the time specified in that section; or
          1. fail to comply with an applicable financial reporting standard; or
          2. an overseas company is required to comply with section 204 and the financial statements or group financial statements referred to in that section—
            1. are not completed and signed within 5 months after the balance date of the overseas company; or
              1. fail to comply with an applicable financial reporting standard; or
              2. a company or an overseas company fails to comply with section 207 (which relates to auditing); or
                1. a company or an overseas company fails to comply with section 207E (which relates to registration of financial statements); or
                  1. a company fails to comply with section 207F (which relates to the supply of copies of financial statements prepared for tax purposes).

                    1. The company or overseas company commits an offence and is liable on conviction to a fine not exceeding $50,000.

                    2. Every director of the company or overseas company commits an offence and is liable on conviction to the penalty set out in section 374(3).

                    3. See section 376(2) (which provides defences to directors in respect of an offence under this section).

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                    Notes
                    • Section 207G: inserted, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).