For-profit general purpose financial statements (GPFS)

General purpose financial statements (GPFS) are financial statements that are prepared in accordance with generally accepted accounting practice in New Zealand.

For FMC reporting entities, GPFS must be prepared under the requirements of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS); all other for-profit companies that must prepare GPFS can do so under the NZ IFRS Reduced Disclosure Regime (NZ IFRS RDR). NZ IFRS RDR has the same recognition and measurement requirements as full NZ IFRS, but provides considerably reduced disclosure requirements. GPFS of an overseas company may be the financial statements of that company that comply with the laws of the country in which it is incorporated (subject to the Registrar’s satisfaction).

GPFS - Moore Stephens Markhams Audit

GPFS diagram notes

  1. The term ‘FMC reporting entity’ is defined in the Financial Markets Conduct Act 2013. FMC reporting entities must include issuers of regulated products under the FMA 2013, listed issuers, operators of licenced markets, recipients of money from a conduit issuer, registered banks, licenced insurers, credit unions and building societies.
  2. A company is a subsidiary of an overseas company if it is more than 50 percent owned by an overseas company (including a subsidiary of an ultimate overseas company).
  3. 25 percent or more overseas ownership means 25 percent to 50 percent owned by an overseas company or a subsidiary of an overseas company, or 25 percent or more owned by overseas individuals.
  4. For an overseas company trading in NZ, size is based on the overseas company (and its subsidiaries), not just on the NZ operation. An overseas company is large if it and its subsidiaries have revenue in excess of $10million or assets in excess of $20 million.
  5. If the NZ business of an overseas company is large, the financial statements must include, in addition to the financial statements of the overseas company, financial statements for its NZ business.
  6. A company is not required to audit and file if it has more than 25 percent overseas ownership and is a subsidiary of a NZ company that files audited group financial statements.
  7. A large company with less than 25 percent overseas ownership must prepare GPFS and have them audited, but can opt out of the requirement for audit with 95 percent shareholder approval. If GPFS are audited, they must be filed.
  8. Non-large companies with 10 or more shareholders must prepare GPFS and have them audited, but can opt out of both requirements with 95 percent shareholder approval. If the company opts out of preparing GPFS, it must meet Inland Revenue’s minimum financial reporting requirements.
  9. Non-large companies with fewer than 10 shareholders are not required to prepare GPFS or have them audited, but must do so if at least five percent of shareholders require them to. Where GPFS are not prepared, Inland Revenue’s minimum financial reporting requirements must be met.

Thresholds are based on figures as at balance date of each of the two preceding accounting periods.

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