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Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standards - Tiers of financial reporting

32: Process for preparing proposals to vary or replace strategy

You could also call this:

"How to plan a change to the financial reporting strategy"

Illustration for Financial Reporting Act 2013

When you want to change or replace a strategy for financial reporting, you must think about some important things. You have to consider the purpose mentioned in section 29 and the good and bad points of putting different types of reporting entities into different groups. You also need to think about which entities have a higher level of public accountability under section 461K of the Financial Markets Conduct Act 2013.

You must make sure the new strategy says what criteria entities must meet to be in each group and what financial reporting rules will apply to each group. The strategy must also include any other required information. When you describe the financial reporting rules, you can refer to a set of standards, specific standards, or accounting methods.

When you propose a change or replacement to the strategy, you must give your reasons for it, including why you think it is a good idea.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632938.

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31: Minister may approve variation or replacement of strategy, or

"The Minister can say yes or no to changing a plan, and must consider important matters when making this decision."

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33: Consultation on proposals, or

"The Board must talk to people who will be affected by big changes to a strategy before making a decision."

Part 2External Reporting Board, standards, and provisions that apply to other enactments
Standards: Tiers of financial reporting

32Process for preparing proposals to vary or replace strategy

  1. In preparing a proposal for the variation or replacement of the strategy, the Board must—

  2. have regard to—
    1. the purpose referred to in section 29; and
      1. the advantages and disadvantages of placing different classes of reporting entities within different tiers of financial reporting; and
        1. which FMC reporting entities are considered to have a higher level of public accountability under section 461K of the Financial Markets Conduct Act 2013; and
        2. ensure that the strategy, after the variation or replacement takes effect,—
          1. specifies the qualifying criteria for each tier of financial reporting; and
            1. describes the financial reporting requirements that will apply for each tier of financial reporting; and
              1. includes any other prescribed matters.

              2. The description under subsection (1)(b)(ii) may refer to—

              3. a set of standards (for example, International Financial Reporting Standards and International Public Sector Accounting Standards):
                1. specific standards:
                  1. accounting policies, principles, concepts, or methods (for example, the principles of accrual accounting):
                    1. any combination of the matters in paragraphs (a) to (c).

                      1. A proposal for the variation or replacement of the strategy must specify the Board's reasons (including why the variation or replacement is considered to be appropriate).

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