THE CORPORATIONS LAW

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT

PART 2M.1 - OVERVIEW

SECTION 285   OVERVIEW OF OBLIGATIONS UNDER THIS CHAPTER  

285(1)  Obligations under this Chapter.  

Under this Chapter, all companies, registered schemes and disclosing entities must keep financial records (see sections 286-291) - and some must prepare financial reports (see sections 292-323D). All those that have to prepare financial reports have to prepare them annually; disclosing entities have to prepare half-year financial reports as well. The following table sets out what is involved in annual financial reporting:

---------------------------------------------------------------
 Annual financial reporting
---------------------------------------------------------------
 steps                        sections  comments
---------------------------------------------------------------
 2  prepare financial report  s. 295    The financial report
                                        includes:
                                         * financial statements
                                         * disclosures and
                                           notes
                                         * directors'
                                           declaration.
---------------------------------------------------------------
 2   prepare directors'      s. 298      The report has both a
     report                              general component
                                         (s. 299) and a
                                         specific component
                                         (s. 300).
 ---------------------------------------------------------------
 3   have the financial      s. 301,     A small proprietary
     report audited and      307, 308    company preparing a
     obtain auditor's                    financial report in
     report                              response to a share-
                                         holder direction under
                                         s. 293 only has to
                                         have an audit if the
                                         direction asks for it.

                                         Under s. 312, officers
                                         must assist the auditor
                                         in the conduct of the
                                         audit.

                                         ASIC may use its
                                         exemption powers under
                                         s. 340 and 341 to
                                         relieve large prop-
                                         rietary companies from
                                         the audit requirements
                                         in appropriate cases
                                         (s. 342(2) and (3)).
---------------------------------------------------------------
 4   send the financial      s. 314      A concise financial report
     report, directors'                  may be sent to members
     report and auditor's                instead of the full
     report to members                   financial statements
                                         (s. 314(1)-(2)).

                                         For deadline see
                                         s. 315(1)-(4).
---------------------------------------------------------------
 5   lodge the financial      s. 319     For deadline see
     report, directors'                  s. 319(3).
     report and auditor's
     report with ASIC                    Companies that have the
                                         benefit of the grand-
                                         fathering in s. 319(4)
                                         do not have to lodge.
---------------------------------------------------------------
 6    [public companies only] s. 317     For the AGM deadline.
      lay financial report,              see s. 250N
      directors' report and
      auditor's report before
      AGM 

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285(2)  Application to disclosing entities.  

This Chapter covers all disclosing entities incorporated or formed in this jurisdiction (whether or not they are companies or registered schemes).

285(3)  Application to registered schemes.  

For the purposes of applying this Chapter to a registered scheme:

(a)  the scheme's responsible entity is responsible for the performance of obligations in respect of the scheme; and

(b)  the directors and officers of the responsible entity are to be taken to be the directors and officers of the scheme; and

(c)  the debts incurred in operating the scheme are to be taken to be the debts of the scheme.

285(3A),(4)  (Repealed by No 61 of 1998, Sch 1 (effective 1 July 1998).)