Financial Reporting changes — common sense prevails
It’s not often that I’m thrilled with the IRD. Yes, I know they do the best they can with limited resources, but they also have a tendency to make things much too complicated. Take, for example, the complex way overseas investments and foreign superannuation schemes are taxed or the Financial Arrangement rules on assets and liabilities in foreign currencies — both of which are difficult to understand.
So the role of the IRD (in conjunction with the External Reporting Board) in simplifying the annual Financial Reporting requirements for the vast majority of small and medium companies is to be greatly applauded.
Page after complicated page of reports and notes are a huge turn off even to the most experienced business owner, which is a real shame, because it’s vital that business owners understand their annual financial statements and use them as the starting point for improving their businesses.
So what’s changing? See full article here