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Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Monetary amounts adjusted for inflation

48: Minister must regularly review amounts to take into account inflation

You could also call this:

"Minister checks money amounts to keep up with price rises due to inflation."

Illustration for Financial Reporting Act 2013

The Minister has to check some money amounts regularly. You need to know that these amounts are in sections like section 45 and section 46 of this Act, and also in other laws like the Charities Act 2005, the Companies Act 1993, the Friendly Societies and Credit Unions Act 1982, and the Financial Markets Conduct Act 2013. The Minister checks if these amounts should be changed because of inflation, which is when prices rise over time.

The Minister uses something called the CPI, which stands for Consumers Price Index, to help with this check. The CPI is like a measure of how much prices have gone up. The Minister has to do the first check within 8 years of this law starting, and then do checks every 6 years after that.

The Minister can also make suggestions to change these money amounts after doing a check, and can even round the numbers to make them easier to work with.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4632965.

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Part 2External Reporting Board, standards, and provisions that apply to other enactments
Monetary amounts adjusted for inflation

48Minister must regularly review amounts to take into account inflation

  1. The Minister—

  2. must review the monetary amounts specified in sections 45 and 46 of this Act, section 42D of the Charities Act 2005, section 204(3) of the Companies Act 1993, section 64(2) of the Friendly Societies and Credit Unions Act 1982, and sections 461Q and 461S of the Financial Markets Conduct Act 2013 for the purpose of determining whether or not to recommend that an adjustment be made to those amounts in order to take into account any increase in the CPI during the period to which the review relates; and
    1. may, after conducting a review, make a recommendation for the purposes of section 49.

      1. The first review under this section must be completed on or before the date that is 8 years after the date on which this section comes into force.

      2. Subsequent reviews under this section must be completed on or before the date that is 6 years after the previous review was completed.

      3. The Minister may, in making a recommendation, make any rounding adjustments that he or she thinks fit.

      4. In this section, CPI means the Consumers Price Index (all groups) published by Statistics New Zealand or, if that index ceases to be published, any measure certified by the Government Statistician as being equivalent to that index.

      Notes
      • Section 48(1)(a): amended, on , by section 44(1) of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).
      • Section 48(1)(a): amended, on , by section 11 of the Financial Reporting Amendment Act 2014 (2014 No 64).
      • Section 48(3): amended, on , by section 44(2) of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 (2021 No 39).
      • Section 48(5): replaced, on , by section 107(1) of the Data and Statistics Act 2022 (2022 No 39).