General Purpose Financial Statements, prepared in accordance with GAAP, are required when your organisation is:
If you are a NZ company and for both of the past two financial years your Total Assets were greater than $60m or the Total Revenue was greater than $30m then your company is large and Tier 2 reporting is the minimum requirement.
If you are an overseas company (or branch of one) and for both of the past two financial years your Total Assets were greater than $20m or the Total Revenue was greater than $30m then your company is large and Tier 2 reporting is the minimum requirement.
Tier 1 reporting is only required if you are also publicly accountable (ie you hold funds invested by the general public). This requires your auditor to be licensed for these types of audit and we are not.
If you have 10 or more shareholders then the default reporting requirement is as for large entities, however a vote of 95% of the shareholding to "Opt out" of this reporting requirement can be made.
Have a requirement to prepare financial statements under specific legislation (eg retirement villages), or are required to follow GAAP in your founding document.
Special Purpose Financial Statements can be prepared in all other situations.
A common special purpose reporting framework being adopted is the NZ Institute of Chartered Accountants Special Purpose Financial Reporting Framework for use by For-Profit Entities (SPFR for FPEs).
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