A groundswell of opposition from private company owners was obvious when submissions on the proposal closed late last month.
Mr Power said yesterday he was familiar with the main arguments for and against filing requirements for large non-issue companies.
"Some of the arguments against, such as respect for privacy and commercially sensitive information, are underpinned by the core values of the Government.
"It is my view that the arguments against filing outweigh the arguments for filing and the status quo should remain."
He had decided to make an early announcement on the issue to put business concern to rest, Mr Power said.
Deloitte Dunedin audit partner Peter Gulliver, who worked on submissions against the proposal with Otago businesses, described Mr Power's decision as sensible and one which would be welcomed by the businesses which would have been affected.
The Ministry of Economic Development's proposal was expected to be controversial and there had obviously been some strong submissions against requiring private businesses to publicly file their financial statements.
"Private businesses are the backbone of the New Zealand economy and they will now not have to worry about the distraction of making commercially sensitive information available to the public," Mr Gulliver said.
The loss of privacy for companies that were otherwise not publicly accountable would outweigh the benefits to other potential users of the information, he said.
Where other users, such as major creditors and suppliers, required a company's financial statements to support a supply arrangement or business transaction, experience showed it was usually a matter for discussion and negotiation between the parties.
A general mandate to make that information publicly available was not needed, Mr Gulliver said.
Mr Power said his early announcement would also allow the focus of the debate to move to other reform proposals that were being considered as part of the review of the financial reporting framework.
An example was whether to remove the requirement on small and medium companies to prepare financial statements in accordance with generally accepted accounting practice.
