Financial Reporting and Audit Requirements
Certain types of entities must have their financial reports audited by a registered company auditor, in accordance with the Corporations Act 2001.
A company (other than a small proprietary company), a registered scheme, or a disclosing entity must have its annual financial report audited (see Regulatory Guide 115 and CO 98/1417 Audit Relief for Proprietary Companies) by a registered company auditor.
A disclosing entity must also have its interim financial report reviewed and obtain a registered company auditor’s review report.
ASIC Requirements for Public and Private Entities
Public Companies (not disclosing entities or limited by guarantee)
Public companies must:
- Prepare annual financial reports in accordance with Chapter 2M of the Corporations Act
- Ensure the reports are audited
- Lodge reports with ASIC within four months of the financial year end
- Send reports to members by the earlier of four months after year-end or 21 days before the AGM
Exempt Public Companies
Some public companies may be exempt from Part 2M.3 of the Corporations Act (under ASIC Instrument 2016/785) if they meet all of the following conditions:
- Are wholly-owned entities
- Are not borrowing corporations, financial services licensees, or guarantors
- Have entered into a deed of cross guarantee with other companies in the closed group
In these cases, audited financial statements are not required for ASIC lodgement or distribution to members.
Companies Limited by Guarantee
Small Companies Limited by Guarantee
A company is considered small if, during the financial year:
- It is limited by guarantee
- It is not a deductible gift recipient (DGR)
- Its revenue (or consolidated revenue if applicable) is less than $250,000
If requested by a member or ASIC, the company must prepare:
- Annual financial reports
- A directors’ report in line with Section 300B of the Corporations Act
These reports must be audited or reviewed in accordance with Chapter 2M.
These companies may be required to prepare reports if directed by ASIC or a member. If so, they must:
- Prepare annual financial reports and a directors’ report with disclosures under Section 300B of the Corporations Act 2001
- Ensure the reports are prepared in accordance with Chapter 2M
- Have the reports audited or reviewed, as applicable
Notify members that the annual financial report is available
Companies with Revenue Less Than $1 Million
You must prepare:
- Annual financial reports
- A directors’ report with specific disclosure as set out in Section 300B of the Corporations Act
which are
- Prepared in accordance with Chapter 2M
- Audited or reviewed
The annual financial report must be given to any member who elects to receive it.
Company limited by guarantee with annual (or consolidated) revenue of $1 million or more
You must prepare:
- Annual financial reports
- A directors’ report with specific disclosure as set out in Section 300B of the Corporations Act
which are
- Prepared in accordance with Chapter 2M
