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Financial Reporting Act 2013

Preliminary provisions

9: Obligation to comply with generally accepted accounting practice prevails

You could also call this:

"Companies must follow standard accounting rules when making financial statements."

Illustration for Financial Reporting Act 2013

If you have a company, you need to follow certain rules when making financial statements. You must make your financial statements follow generally accepted accounting practice. This is true even if another law says you can follow either generally accepted accounting practice or a different standard.

When two laws apply to your company, one saying you must follow generally accepted accounting practice and the other giving you a choice, you still have to follow generally accepted accounting practice. You have to do this when making your financial statements. This rule applies to your company's financial statements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5703109.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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"What 'generally accepted accounting practice' means in financial reporting"

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Part 1Preliminary provisions

9Obligation to comply with generally accepted accounting practice prevails

  1. This section applies if—

  2. an Act that applies to an entity (A) provides that the financial statements of A must comply, or be prepared in accordance with, generally accepted accounting practice; and
    1. another Act that applies to A provides that the financial statements of A must comply, or be prepared in accordance with, either generally accepted accounting practice or a non-GAAP standard.

      1. The financial statements of A must comply, or be prepared in accordance with, generally accepted accounting practice.