New Zealand accounting standards change
In this video, Grant Anderson, Head of Accounting at Xero accounting software, gives his take on the new accounting standards for New Zealand small businesses.
From April 2014, small businesses with less than $30 million in turnover or less than $60 million in assets will not have to produce annual accounts that follow the new External Reporting Board (XRB) standards (also called the Generally Accepted Accounting Practice). The majority will still have to produce accounts for governance purposes, the IRD and their bank though.
"This new legislation gives small businesses real freedom in their financial statements. For the first time, accountants are going to be able to put real meaning into the financial accounts," Grant explains.
Until now, he says, the law has dictated what accountants have had to put in end-of-year financial statements.
"For Xero users, it's going to mean financial statements are more understandable. They're going to be able to get more engaged with their financial statements and their accountants and that's going to drive more success in their business."
Check out the Xero blog for more thoughts on the latest accounting news.