Lotu-Iiga Sam: Financial Reporting Bill — Second ReadingText is incorporated into the Bound VolumeLotu-Iiga Sam: Financial Reporting Bill — Second Reading[Sitting date: 02 July 2013. Volume:691;Page:11512. Text is incorporated into the Bound Volume.]Peseta SAM LOTU-IIGA (National—Maungakiekie):Tēnā koe Mr Assistant Speaker in this Māori Language Week. I also speak in support of this Financial Reporting Bill. It is a very good bill. It was introduced by the Minister of Commerce Craig Foss. What it really does is it improves the way that we report on financial entities across this country whether they be large or small by making all-purpose general financial reporting consistent—consistent with the objectives of our financial reporting system. It has got to have the confidence and trust of investors and the confidence and trust of creditors but also the trust and confidence of those who read financial statements and who must make decisions based on those financial statements. It is another example of this Government demonstrating its ability to support not just small and medium sized enterprises but also large businesses and supporting them to go about their duties and obligations not constraining them with red tape and bureaucracy—as we found under the Labour Government the 9 long years of the Labour Government—but allowing them to prosper and not bogging them down with red tape and bureaucracy.By cutting down on expensive and unnecessary reporting obligations it builds a competitive economy. It allows employers to hire more people. It also means that financial reporting is done in an appropriate constructive and transparent manner. We know that more than half a million companies are registered in New Zealand and all ofthem regardless of their size are required to prepare financial statements. We know that small to medium sized enterprises are the engine room of the New Zealand economy. They provide many jobs and opportunities across our country and it is important that they feel confident in a system that supports them.What does this bill do? Well it clarifies what is expected of charities improves the quality of financial reporting and allows for easier comparisons between charities. The Commerce Committee received and considered 44 submissions and we heard 16 submissions. I am glad the previous Green speaker Julie Anne Genter also enjoyed and received well the submissions that were made because we did at least hear from practitioners on the front line who are dealing with their constituencies who are dealing with their customers—their consumers—and who are dealing with people out in our communities.The committee responded to that by increasing from $40000 to $125000 the threshold at which not-for-profit entities must prepare financial statements on an accrual basis rather than a cash basis. That was a reflection of and in response to some strong submissions from various charities as well as from accounting firms and others that deemed the $40000 threshold level to be insufficient. What it does is it reduces the burden on small charities which may not have the capacity to prepare such accounts. They are often one-person or two-person operations and they do not have the capacity the abilities or the resources to prepare such accounts.We also extended the deadline by which large companies that are not issuers must prepare financial statements from 3 months to 5 months of the balance date—again in response to submissions we heard—in order for those companies to have sufficient time and sufficient resources to apply to their accounts from the balance date.The committee did its job. The Minister has done his job. This Government is doing its job to promote our small to medium sized enterprises in this country which supports our economy and supports our families in our communities and that is why I support this bill.