Government to reduce ASIC financial reporting headache

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Government to reduce ASIC financial reporting headache

If your business has between 50 and 100 employees, this might be of interest.

The government announced today that about 2,200 companies will no longer have to lodge financial reports, director’s reports and auditor’s reports with ASIC every year.

Under the government’s plan, the reporting threshold will double. Companies will be required to report each year if they meet two of the following criteria: they have 100 or more employees, $50 million or more in consolidated revenue, or $25 million or more in consolidated gross assets. 

The goverment claims the change could save businesses about $36,950 a year, which it estimates is the average cost of preparing and auditing financial reports.

It notes that small proprietary companies will still need written financial records. They may also have to audit their financial records if ASIC or at least five percent of their shareholders direct them to do so.

Keep in mind that there are exceptions to the financial reporting threshold. For example, the ASIC web site points out that small proprietary companies with at least one crowd-sourced funding shareholder at any time during the year must lodge financial reports.

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