Financial Reporting (Inflation Adjustments) Regulations 2021

The table below provides a summary of the legislation impacted by the 2021 inflation adjustments. The inflation adjustments come into force on 1 January 2022.

Size thresholds impacting statutory reporting obligations

 

Current

Inflation adjusted

Amendments to Financial Reporting Act 2013 (Section 45 & 46)

Size threshold for a large entity (other than an overseas company or a subsidiary of an overseas company), for the purpose of various enactments 

$60 million assets; or

$30 million revenue

$66 million asset; or

$33 million revenue

Size threshold for a large overseas company or a subsidiary of an overseas company, for the purpose of various enactments

$20 million assets; or

$10 million revenue

$22 million assets; or

$11 million revenue

Size threshold for a “specified not-for-profit entity”, for the purpose of various enactments

$125,000 total operating payments

 $140,000 total operating payments

Amendments to Companies Act 1993 (Section 204)

Size threshold for a large New Zealand business of an overseas company  

$20 million assets; or

$10 million revenue

$22 million asset; or

$11 million revenue

Amendment to Friendly Societies and Credit Unions Act 1982 (Section 64)

Size threshold, below which a registered society or branch which may opt-out of reporting requirements

$30 million total operating expenditure

$33 million total operating expenditure

 

Size thresholds impacting audit and review obligations

 

Current

Inflation adjusted

Amendments to Charities Act 2005 (Section 42D)

Size threshold for a large charitable entity for the purpose of establishing when financial statementsmust be audited or reviewed

$1 million total operating expenditure

$1.1 million total operating expenditure

Definition of “medium” for setting mandatory review requirements for registered charities

$500,00 total operating expenditure

$550,000 total operating expenditure