When you look at financial statements or reports, you want to know if they follow the rules. In this Act, financial statements or reports follow the rules if they comply with applicable financial reporting standards. They also follow the rules if they comply with an authoritative notice for things that the standards do not cover.
You need to check two things to see if financial statements or reports comply with generally accepted accounting practice. First, you check if they comply with applicable financial reporting standards. Then, you check if they comply with an authoritative notice for matters that the standards do not cover.
This means that financial statements or reports must follow the standards and notices to be considered as following generally accepted accounting practice. You can think of it like a checklist to make sure everything is done correctly. The Act uses the term generally accepted accounting practice to describe this checklist.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632894.
7: Meaning of group financial statements, or
"What 'group financial statements' means in simple terms: financial info about a group at a certain time"
9: Obligation to comply with generally accepted accounting practice prevails, or
"Companies must follow standard accounting rules when making financial statements."
In this Act, financial statements, group financial statements, a report, or other information complies with generally accepted accounting practice only if the report, statements, or information comply with—
