IRD Minimum Reporting 2013 White Paper…

The NZ IRD has released this white paper to seek

comment on their taxation focussed proposal for lighter

financial reporting requirements.

It matches proposals put forward by the business

community in NZ (NZICA).

DECEMBER2013

The White Paper proposes changes the IRD

would like to make to financial reporting

required for taxation purposes. They still include

the need for a balance sheet, income statement

and various notes.

They still require cost-based accrual accounting.

WHAT DOES IT SAY.

DECEMBER 2013

Some industries get a special mention, including

forestry (need to include more detail about forest

asset valuations) and agriculture (need to include

more detail about livestock valuation).

By comparison, perhaps property investment

companies and financial institutions may be

getting off lightly.

WHAT ELSE DOES IT SAY.

DECEMBER 2013

The IRD claims to be the largest user of financial

reports, currently requiring some 700,000 financial

reports to be filed each year.

Significantly, the white paper does not suggest that

financial reports need to be prepared by qualified

accountants, nor that they need to be audited to any

degree. Other professionals becoming more skilled at

reporting data (for instance, for the ETS) may find

they can comfortably move into this area of business.

WHAT ELSE DOES IT SAY.

DECEMBER 2013

• The IRD proposal is founded on pushing compliance costs down, improving the efficiency of the taxation system in NZ.

• This will have to push down compliance revenues for accountants.

• It should make life easier for the IRD though.

The comments on these slides are the views of Tim Kirby, Sydney.

You should always read the report itself before putting your reputation, or any money, on the line.

WHAT DOES IT MEAN.

Tim Kirby, Sydney CA, CIA, LA-EMS

au.linkedin.com/in/timkirbysydney

DECEMBER 2013