Important notice for large private companies with ‘grandfathered’ status
Important notice for large private companies with ‘grandfathered’ status
Some large proprietary companies were previously exempt from lodging financial reports with the Australian Securities and Investments Commission (ASIC) provided their financial reports were audited within four months of the reporting date, i.e. they were ‘grandfathered’. Following amendments to the Corporations Act, for financial years ending on or after 10 August 2022, these companies must now lodge their audited financial reports with ASIC.
Large private companies that were ‘grandfathered' should note ASIC’s recent activity regarding failure to lodge complete audited general purpose financial statements (GPFS).
In a recent media release, ASIC noted a large ‘grandfathered’ private company that re-lodged its financial report for the year ended 30 June 2023 because when it initially lodged its first financial report for the year ended 30 June 2023, it did not include comparatives for the 30 June 2022 financial year.
Presenting comparatives is a requirement of paragraph 20 of AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities.
Following ASIC’s inquiries regarding non-compliance with AASB 1060 as part of its financial reporting and audit surveillance program, the entity in question agreed to re-lodge its 30 June 2023 financial report with comparatives.
ASIC continues to focus its surveillance efforts on large ‘grandfathered’ proprietary companies to ensure they have met their reporting obligations. We remind all large proprietary companies that at a minimum, Tier 2 Simplified Disclosures GPFS must be prepared applying AASB 1060, and the Reduced Disclosures and special purpose financial statements are no longer permitted for entities preparing financial reports in accordance with Chapter 2M of the Corporations Act 2001.
More information
Please refer to our previous article for more information.
Need help?
Please contact our IFRS & Corporate Reporting team if you require assistance preparing GPFS for large ‘grandfathered’ proprietary companies.