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Understanding Financial Report Lodgements: Key Takeaways for Businesses

As we strive to keep you updated with crucial business protocols, here's a succinct overview of Financial Report Lodgements, based on ASIC's Information Sheet 31.


On this page:

  • Which companies need to lodge financial reports?

  • Exemptions for Lodging Financial Reports

  • Documents to be Lodged

  • Financial Report Lodging Requirements

  • Lodging Process

Financial Report Lodgements

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Which companies need to lodge financial reports?

Companies must maintain financial records, but only certain ones must prepare and lodge financial reports with ASIC. These include companies where:

  • Large amounts of money are involved.

  • The public has invested in them.

  • They are charitable and not for profit. For companies registered as charities, refer to the ACNC.

Per Section 292 of the Corporations Act 2001, entities obligated to prepare financial reports include:

  • All disclosing entities.

  • Public companies.

  • Companies limited by guarantee (excluding small ones).

  • Large proprietary companies not disclosing.

  • All registered managed investment schemes.

  • Foreign-controlled small proprietary companies.

  • Small proprietary companies with crowd-sourced funding shareholders during the year.


Entities that might need to prepare financial reports are:

  • Small proprietary companies directed by ASIC.

  • Small proprietary companies directed by shareholders.

  • Small companies limited by guarantee directed by a member as per section 294A of the Corporations Act.

Reports must adhere to the Corporations Act's accounting standards, aligning with the Australian Accounting Standards and International Financial Reporting Standards (IFRS) adopted by Australia in 2005.


Section 601CK of the Corporations Act mandates registered foreign companies to submit financial documents to ASIC. If uncertain about financial reporting duties, seek professional advice.


Australian financial services (AFS) licensees also need to submit financial statements as per section 989B of the Corporations Act. Refer to forms FS70 and FS71 for AFS licensees' annual accounts and audit report lodging.


Stock Exchange

Exemptions for Lodging Financial Reports

Certain companies may be exempted from lodging financial reports under specific conditions:

  • If they've submitted financial reports to ASX, NSX, SIM VSE, or SSX and met the conditions in ASIC Corporations (Electronic Lodgement of Financial Reports) Instrument 2016/181. Foreign-controlled small proprietary companies where the controlling foreign company is registered with ASIC, lodging consolidated reports covering the Australian company for the control duration.

  • Small proprietary companies controlled by foreign entities not in a large group might avoid appointing auditors or lodging reports if directors use relief by ASIC Corporations (Foreign-Controlled Company Reports) Instrument 2017/204. They must lodge Form 384 within the specified timelines.


Never presume exemption eligibility; only a minority qualify. Typically, past-due financial report reliefs aren't granted.


Documents to be Lodged

Always submit Form 388 with the necessary documents unless:

  • The company lodges financial statements with ASX, NSX, SIM VSE, or SSX.

  • The entity is a registered foreign company (use Form 405).

  • AFS license holders must lodge a profit and loss statement, balance sheet, and auditor’s report using Form FS70 and FS71. For guidance, refer to AFS licensees: Annual accounts and audit report lodgement using Form FS70 and FS71.


Disclosing entities submit half-year financial reports via Form 7051, unless they lodge with ASX, NSX, SIM VSE, or SSX.


Below is the table detailing annual financial report components:

Documents

Financial Report Lodging Requirements

Per Section 319 of the Corporations Act:

  • Disclosing entities or registered managed investment schemes must lodge financial reports within three months post-financial year-end.

  • All other companies have a four-month window post-financial year-end.

  • Companies with no trading activity or profit should still file financial reports, even with 'zero' figures.


Lodging Process
  • Use Form 388 online for financial statements and reports. If you lodge with ASX, NSX, SIM VSE, or SSX, you don’t need to file with ASIC.

  • For online lodgement with ASIC, use the officeholder, registered agent, and auditor portals. Register for access first.

  • Ensure timely lodgement by registering and setting up your online account early.

  • With SBR-enabled software, lodge via the Standard Business Reporting (SBR) Program.


For More Details
 

Stay informed, stay compliant!


Important: This summary is for general understanding and not a substitute for professional advice. If you have any questions or need further clarification. Feel free to contact us, and our team will assist!


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