New consolidated entity disclosure statement for not-for-profit entities

Our previous article noted the new requirements for all Australian public companies (both listed and unlisted) to present a ‘consolidated entity disclosure statement’ (statement) as part of their financial report for years ending 30 June 2024. This will result in more information being disclosed about each subsidiary and their tax residency at the end of the financial year. The directors will also have to declare that this information is ‘true and correct’.

Does the new statement apply to companies limited by guarantee?

What about charities?

Companies limited by guarantee registered as charities and reporting in accordance with the Australian Charities and Not-for-profits Commission Act 2012 do not have to prepare the statement.

What if there are no subsidiaries?

Companies limited by guarantee that don’t have subsidiaries, or those not required to prepare consolidated financial statements in accordance with AASB 10 Consolidated Financial Statements must still prepare the statement, although it will be brief. In such cases, the statement would merely need to explain that the entity has no controlled entities and is, therefore, not required by the accounting standards to prepare consolidated financial statements. Alternatively, the statement would need to state that the entity has controlled entities, but is nevertheless exempt from preparing consolidated financial statements because it has applied an exemption available in AASB 10.

Is the statement subject to audit?

Yes, the statement will be subject to audit.

Start preparing now

Companies limited by guarantee should start preparing the consolidated entity disclosure statement now, as it may take some time to gather the required information, particularly the tax residencies. Our previous article provides more detail.

Need help?

Implementing the requirements of any new legislation can take time and effort. Please get in touch with our IFRS & Corporate Reporting team for help.