The Australian Securities and Investments Commission (ASIC) are targeting proprietary companies that have not lodged financial statements for FY 2016.
Over the past fortnight, there has been an increase in activity by ASIC in targeting large proprietary companies and foreign controlled small proprietaries that are not lodging financial statements. ASIC is requesting said companies confirm their ‘non-lodgement’ status or lodge the ‘outstanding’ financial statements.
A significant number of proprietary companies have been contacted by ASIC to confirm whether, for the 2016 financial year, the company was:
- a large proprietary company;
- a foreign controlled small proprietary company; or
- a small proprietary company.
If the proprietary company was ‘large’ or ‘foreign controlled’ for FY 2016, the company is required to lodge the outstanding audited financial statements urgently.
By the
Corporations Act 2001, a proprietary company is a ‘large proprietary company’ for a financial year if it satisfies at least 2 of the following 3 criteria:
- the consolidated revenue for the financial year of the company and the entities it controls (if any) is $25 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 (if any) is $12.5 million, or more;
- the company and the entities it controls (if any) have 50, or more employees at the end of the financial year.
For more information, or discuss the determination of a company’s status, or the preparation and/or audit of annual financial statements under the Corporations Act 2001, please contact your local Moore Stephens advisor.
Ryan Leemon
Moore Stephens Victoria
Director – Audit and Assurance
+61 3 5215 6803
rleemon@moorestephens.com.au