1. What are the major changes taking place in small and medium-sized business financing?
2. What factors determine capital needs and financing alternatives in export-import trade?
3. State the common external sources of financing for export-import businesses.
Changes for small and medium companies
The financial reporting obligations for small and medium-sized non-issuer companies are being simplified. Companies that do not meet the definition of large (annual revenue of more than $30 million, or assets of $60 million or more) will no longer be required to prepare general purpose financial reports. Instead they will just need to prepare special purpose financial reports (SPFR).
The New Zealand Institute of Chartered Accountants will develop the revised requirements and produce a set of guidelines that will provide a consistent approach for the preparation of SPFR, and Inland Revenue will base its minimum standards for reporting on these revised requirements.
The Government has decided that large and medium-sized registered charities will be required to have their annual financial statements independently audited or reviewed by a qualified accountant. For more information see Assurance for Registered Charities.