Company financial reporting obligations

Large Proprietary Companies must lodge Financial Statements. Set out below for Officeholders is the current criteria used to asses if a company is (or has become) a Large Proprietary Company.

Criteria

A Proprietary Company is considered to be a Large Proprietary Company for a financial year if it satisfies at least two of the following conditions:

• The consolidated revenue for the financial year of the company and the entities it controls (if any) is $25m or more
• The value of the consolidated gross assets of the entity for the financial year of the company and the entities it controls (if any) is $12.5m or more
• The company and the entities it controls (if any) have 50 or more employees at the end of the financial year.

If any two of the above criteria holds true for the company then it is considered a Large Proprietary Company.

It must therefore lodge financial statements for the relevant financial year with a form 388 Copy of Financial Statements and Reports.

The Financial Statements and Reports form must be lodged within four months after the end of the company’s financial year end.

A Small Proprietary Company is not required to lodge Financial Statements or Reports unless:

• Directed by ASIC or shareholder(s) with at least five per cent of the vote; or
• Controlled by a foreign company for all or part of the year and is not consolidated for that period in financial statements for that year lodged with ASIC:
  • By either a registered foreign company; or
  • A company, registered scheme, or disclosing entity

If you are unsure of your requirements contact your Chartered Accountant.