Incorporated Societies Act 2022

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment
103 Definitions relating to financial reporting

(1)

In this subpart,—

applicable auditing and assurance standard has the same meaning as in section 5(1) of the Financial Reporting Act 2013

generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013

non-GAAP standard has the same meaning as in section 5(1) of the Financial Reporting Act 2013

qualified auditor has the same meaning as in section 35 of the Financial Reporting Act 2013.

(2)

In this subpart, a society is, in respect of an accounting period,—

(a)

a specified not-for-profit entity if it is such an entity in respect of that period under section 46 of the Financial Reporting Act 2013:

(b)

a small society if,—

(i)

in each of the 2 preceding accounting periods of the society, the total operating payments of the society are less than $50,000; and

(ii)

as at the balance date of each of the 2 preceding accounting periods, the total current assets of the society are less than $50,000; and

(iii)

at the balance date of the accounting period, the society is not an entity described in section LD 3(2) of the Income Tax Act 2007 (a donee organisation).

(3)

Subsection (4) applies for the purposes of this subpart if—

(a)

a society is preparing financial statements for an accounting period (the relevant period); but

(b)

the society does not have 2 preceding accounting periods as referred to in subsection (2)(b).

Example

A society is preparing financial statements for an accounting period ending on 31 December 2026. The society was only incorporated in 2025. The society cannot apply the test as to whether it is a small society in subsection (2)(b) because it was not in existence for 2 accounting periods before the relevant period. Instead, it may apply the test in subsection (4).

(4)

The society is a small society in respect of the relevant period if,—

(a)

in the relevant period, the total operating payments of the society are less than $50,000; and

(b)

as at the balance date of the relevant period, the total current assets of the society are less than $50,000; and

(c)

at the balance date of the relevant period, the society is not an entity described in section LD 3(2) of the Income Tax Act 2007 (a donee organisation).

(5)

For the purposes of this section, total current assets has the meaning set out in the regulations.