For the financial year ending 30 June 2024 it is important to understand and determine whether your company meets the criteria for the preparation of general-purpose financial statements (GPFS), have the GPFS audited and lodged with ASIC.
GPFS are financial statements that comply with all applicable Australian Accounting Standards.
The most significant impacts on adopting GPFS may include:
- Consolidation of any subsidiaries and other controlled entities
- Recognition of right-of-use assets and lease liabilities for operating leases
- Recognition of deferred tax assets or liabilities
- Recognition of revenue from contracts with customers in accordance with the relevant Australian Accounting Standard
Large proprietary company
Large proprietary companies are required to prepare GPFS and have the GPFS audited and lodged with ASIC by 31 October 2024, unless ASIC relief applies.
A proprietary company is defined as ‘large’ if it satisfies at least two of the below criteria:
- Consolidated revenue is $50 million or more
- Consolidated gross assets are $25 million or more
- Have 100 or more employees
PLEASE NOTE: the determination of a large proprietary company is based on the following:
- On a group basis – the company is required to consolidate the financial statements and number of employees of any entities it controls; and
- As if the financial statements were prepared in accordance with all applicable Australian Accounting Standards (i.e. GPFS).
Small proprietary company controlled by a foreign company
Small proprietary companies controlled by a foreign company, irrespective of the size and transactions during the year, are required to prepare GPFS and have the GPFS audited and lodged with ASIC by 31 October 2024, unless ASIC relief applies.
For further assistance please contact Jamin Ong, Principal of Audit Division of this office who can assist with your enquiries.
The information provided does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances.
