Consultation paper: Determining whether you are acquiring a business or assets

First published 19 July 2018

1 November 2018

This guidance has been finalised and published. We received four formal submissions, which all supported the proposals. Therefore, no significant changes have been made. The submissions also included some more detailed technical issues that we consider are best dealt with by engaging with us in the context of the particular offer.

19 July 2018

We are consulting on guidance on how to determine whether a business has been acquired (or is to be acquired). Under the FMC Regulations, prescribed financial information about business acquisitions must be included in the PDS for an offer of debt or equity. It is sometimes not clear what is a business acquisition for these purposes.

We are seeking your feedback on our proposed guidance that issuers should:

• refer to generally accepted accounting practice (GAAP) and its guidance to determine whether a business or asset has been acquired
• consider disclosing certain additional information where an asset has been acquired.

Please send your feedback to consultation@fma.govt.nz (please use the title of the consultation paper for the subject line).

Submissions close 5pm Thursday 30 August 2018.