Lodging audited financial reports with ASIC
“ASIC is in the midst of a campaign targeting private companies that are no longer exempt from lodging audited financial reports. Utilising data from the ATO, ASIC has been contacting companies that have moved beyond or not complied with the exemption and are now in breach of their reporting requirements.”
ASIC requires large companies to prepare and lodge a financial report and a directors’ report each financial year and have the financial report audited unless the company is exempt. Large private companies are required to lodge an audited financial report but most small private companies are exempt from these compliance requirements. Some small private companies and small companies controlled by a foreign company may have to lodge financial reports in certain circumstances.
What is a large private company? A private company is defined as large for a financial year if it satisfies at least two of the following criteria:
- The consolidated revenue for the financial year of the company and any entities it controls is $25 million or more
- The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is $12.5 million or more, and
- The company and any entities it controls have 50 or more employees at the end of the financial year.
Failure to lodge the annual audited financial report with ASIC is a breach of directors’ duties and may result in penalties and potentially the company being deregistered.
For more information, please contact Lanyon Partners on (03) 9861 6100.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice.
Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination.
Lanyon Partners cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.