Large Proprietary Companies – Changes to Reporting Thresholds
From 1 July 2019, the financial reporting thresholds for ‘large’ proprietary companies have increased. This will help ease the financial reporting burden on small businesses.
For the 2019-2020 financial year, a proprietary company will be considered ‘large’ if it meets at least two of the following criteria:
the consolidated revenue for the financial year of the company and any entities it controls is $50 million or more;
the value of the consolidated gross assets at the end of the financial year of the company and the entities it controls is $25 million or more; and
the company and any entities it controls have 100 or more employees at the end of the financial year.
Large proprietary companies must prepare and lodge a financial report and a director's report for each financial year. The accounts must be audited unless ASIC grants relief. If a company does not meet at least two of the above criteria, it is 'small' and generally exempt from these onerous reporting requirements. However, in limited circumstances, small proprietary companies may still have to lodge financial reports.
If you need any information about what this change means to your business, please contact our Corporate and Commercial Team.
The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.