Does ASIC consider costs and inconvenience when deciding whether to give a company relief from financial reporting requirements?
Under the Corporations Act 2001 (the Act), ASIC can give relief from one of the financial reporting requirements only if it is satisfied that one of three pre-conditions for relief are met. One of these pre-conditions is that compliance with a requirement of the Act would impose unreasonable burdens on the company. This takes into account the costs of compliance but regard must also be given to the benefits of compliance to users of the company’s financial reports. See ASIC Regulatory Guide 43 for more information.
Related Questions
- Does a wholly-owned entity qualify for class order relief from financial reporting requirements if the company or its entity has failed to lodge financial statements for one to three years prior?
- When should a proprietary company that does not meet the requirements for audit relief under ASIC Class Order 98/1417 apply for individual relief?
- Does ASIC consider costs and inconvenience when deciding whether to give a company relief from financial reporting requirements?
