If a company changed from a public company to a small proprietary company after the end of its financial year, does it still have to prepare and lodge a financial report?
Yes. The reporting obligation under Chapter 2M of the Corporations Act 2001 crystallises at balance date and it is the status of the company at balance date that is relevant. The large/small test for proprietary companies under s45A of the Corporations Act 2001 is based on criteria measured at the end of the financial year or over the financial year. Hence, a large proprietary company is cannot be considered as having become small after year end and before its lodgement deadline and therefore as being exempt from reporting. ASIC has given class order relief in relation to entities that cease to be disclosing entities after balance date. See ASIC Regulatory Guide 68 for more information.
Related Questions
- If ASICs public database shows that a proprietary company has provided notice concerning financial report lodgement or audit relief, does that mean ASIC has approved the relief?
- If a company changed from a public company to a small proprietary company after the end of its financial year, does it still have to prepare and lodge a financial report?
- Does an Australian Company need to prepare and file an annual financial report?
