Following public consultation, ASIC has remade five legislative instruments that affect financial reporting by disclosing entities and entities generally. The relief is set out in the following new legislative instruments:
- ASIC Corporations (Uncontactable Members) Instrument (replaces Class Order 98/101)
- ASIC Corporations (Directors’ Report Relief) Instrument (replaces Class Order 98/2395)
- ASIC Corporations (Synchronisation of Financial Years) Instrument (replaces Class Order 98/96)
- ASIC Corporations (Disclosing Entities) Instrument 2016/190 (replaces Class Orders 98/2016 and 08/15)
- ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 (replaces Class Order 98/100).
ASIC remade these instruments without significant changes before they were due to sunset over the next few years under the Legislation Act 2003.
The instruments:
- relieve entities of the obligation to send a hard copy of the directors’ report, financial report and auditor’s report to members who are uncontactable
- allow entities to transfer some information from the directors’ report to the financial report or to a separate document accompanying both the directors’ report and financial report
- allow entities to synchronise their financial year with that of a foreign parent where that foreign parent has an obligation under a foreign law to synchronise the financial years of controlled entities with its own
- relieve entities from reporting as disclosing entities if they cease to be disclosing entities before the reporting deadline for a financial year
- relieve disclosing entities which have a first financial year of 8 months or less from preparing a half-year financial report and directors’ report during that financial year; and
- allow entities to round amounts disclosed in the directors’ report and financial report.
For the full announcement, click here.