Financial reports
What's new in financial reporting
Although all companies should keep financial records to ensure they understand how their operations are faring, there are some types of companies that will need to keep these records for the purposes of preparing and lodging financial reports with us.
What companies have to lodge financial reports?
Generally, companies are required to lodge reports where:
- there are substantial sums of money involved
- the general public has invested funds with the company, or
- the company exists for charitable purposes only and is not intended to make a profit.
Section 292 of the Corporations Act 2001 (Corporations Act) requires the following entities to prepare financial reports:
- public companies
- disclosing entities
- large proprietary companies
- managed investment schemes
- small proprietary companies that are foreign-controlled
- small proprietary companies that we direct to lodge financial reports.
Are there any exemptions from having to lodge financial reports?
In limited circumstances, some companies are exempt from the requirement to lodge financial reports.
For instance:
- if the company has already lodged financial reports with the Stock Exchange
- if the company has been granted relief by ASIC from the requirement to lodge financial reports
- if the company is foreign-controlled but the foreign company that is in charge is registered with ASIC as a foreign company and lodges consolidated financial reports that include the activities of the Australian company.
Don’t assume that your company would qualify for any exemption. Generally, it is the minority of cases that qualify for some form of relief.
In most cases, relief is not granted for financial reports that were due in the past.
I know I have to lodge reports—how do I go about it?
What documents must I lodge?
A Form 388 Copy of financial statements and reports should always be completed and lodged together with the documents listed in the table below.
| Document | Section of the Corporations Act |
| Balance sheet as at the end of the year | 295(2) & 296(1) |
| Income statement at the end of the year | 295(2) & 296(1) |
| Statement of cash flows for the year | 295(2) & 296(1) |
| Statement of changes in equity/statement of recognised income and expense | 295(2) & 296(1) |
| Consolidated financial statement, if required by accounting standards | 295(2) & 296(1) |
| Notes to financial statements (disclosure required by the regulations, notes required by the accounting standards, and any other information necessary to give a true and fair view) | 295(3) |
| Directors' declaration that the financial statements comply with accounting standards, give a true and fair view, there are reasonable grounds to believe the company/scheme/entity will be able to pay its debts, the financial statements have been made in accordance with the Corporations Act | 295(4) |
| Directors' report, including the auditor's independence declaration | 298-300A |
| Auditor's report | 301 & 308 |
When must I lodge?
Section 319 of the Corporations Act requires a disclosing entity or registered scheme to lodge the financial reports within three months of the end of the financial year. All other companies must lodge their financial reports within four months of the end of the financial year.
If the company has not made a profit or traded during the financial year, financial reports are still required even if it is necessary to show figures as ‘zero’ (e.g. Total assets = $0.00).
How can I lodge financial reports?
As noted above you lodge your financial reports with a copy of Form 388 Copy of financial statements and reports.
You can lodge online through the company officeholder, registered agent and auditor portals once you have registered for access.
Otherwise you can lodge the reports on paper using Form 388 Copy of financial statements and reports.
Need more help?
Other information sheets that you may find useful include:
More information on financial reporting including recent releases
Important notice
Please note that this is a summary giving you the basic information you need.
Professional assistance - If you need further assistance you should consult an accountant or other relevant professional for advice on keeping and preparing financial statements for your company.
| This is Information Sheet 31 (INFO 31). Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance. |
ASIC Website: Printed 08/22/2008
