Big private companies can keep their secrets, says Power

Wednesday 24th February 2010

Private, unlisted companies will escape proposals to make them file annual accounts with the Companies Office, leaving important decisions about reporting standards for small business and charities to be resolved, says Commerce Minister Simon Power.

"Arguments against (requiring public disclosure of the accounts of large, unlisted companies), such as respect for privacy and commercially sensitive information, are underpinned by the core values of the Government," said Power.

The announcement would allow focus on other proposed financial reporting reforms, including whether to remove the requirement on small and medium-sized companies to prepare financial statements in accordance with Generally Accepted Accounting Practice.

"There is also a need to rationalise the financial reporting system for not-for-profit entities by removing the many inconsistencies that exist.

"I expect to make announcements on these and other issues in the second half of 2010," Power said.

Lobby group Business NZ welcomed the decision, saying the initial impetus for requiring large private company filings was consistency with Australian law, a need which diminished owing to the large number of Australian companies gaining exemptions from the requirement.

Businesswire.co.nz

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