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Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standard provisions relating to balance dates

41: Meaning of balance date

You could also call this:

"When a company's financial year ends and its accounts are finalised, that's its balance date."

Illustration for Financial Reporting Act 2013

The balance date of a company is the last day of its financial year. You can think of it as the day when the company's accounts are finalised. The balance date is usually 31 March, but the company's directors can choose a different date if the Commissioner of Inland Revenue agrees.

If a company already had a different balance date before this law started, it can keep using that date until it decides to change it. You can find more information about this in the Financial Reporting Act 1993.

Some companies are affected by other laws that say when their balance date should be. For example, a Crown entity's balance date might be 30 June, as defined in section 136(1) of the Crown Entities Act 2004, or a different date chosen by the Minister of Finance.

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"Every year, you must pick a date to balance your accounts to keep track of your money."

Part 2External Reporting Board, standards, and provisions that apply to other enactments
Standard provisions relating to balance dates

41Meaning of balance date

  1. The balance date of a specified entity is the close of—

  2. 31 March; or
    1. any other date that the directors of the entity adopt as the entity's balance date with the approval of the Commissioner of Inland Revenue.

      1. However, if, immediately before the commencement of this section, a specified entity has a balance date (or a last day of a financial year) other than 31 March (whether under the Financial Reporting Act 1993 or otherwise), the balance date of the entity continues to be that date (until the entity changes its balance date).

      2. If a specified entity is affected by an Act that defines the balance date or the financial year of the entity, the balance date of the entity is that balance date or the last day of that financial year (for example, the balance date of a Crown entity under the definition of financial year in section 136(1) of the Crown Entities Act 2004 is 30 June or any other date determined for that entity by the Minister of Finance).