Significant changes are being made to the financial reporting standards from 01st April 2014. What does this mean to you as a small business owner? Basically the changes are being made in the way your end of year accounts are prepared. The whole idea is to make it simpler to prepare end of year accounts so you will have less compliance cost and can focus more on growing your business.
The initial draft suggested that financial statements were not required for all businesses with less than $30 million turnover, but the IRD objected to that and suggested financial statements are required with a minimum standard level. The requirement for the IRD is to have a basic set of accounts on which they can rely upon in the event of auditing a business. To reflect those changes The Tax Administration (Financial Statements) Order 2014 has been passed which is effective from 01 April 2014, which means your first set of accounts prepared on this basis would be for the year ending 31st March 2015.