Record keeping and financial reporting

Understanding record keeping and financial reporting is essential for Australian companies to ensure compliance with the Corporations Act 2001. This guidance note outlines the key financial reporting requirements, classification of companies, audit obligations, and the consequences of non-compliance. Practitioners must assess which requirements apply to different company types and navigate complex regulatory nuances that impact reporting obligations.

Topics Covered

• Main financial reporting requirements
• Classification of companies for financial reporting
• Obligation to maintain financial records
• Financial reporting obligations
• Financial reports
• Directors' reports
• Audit requirements and auditor’s reports
• Obligation to provide reports to members
• Obligation to lodge reports with ASIC
• Failing to comply with financial reporting obligations

Essential Insights

• Assess how company size and status affect distinct financial reporting responsibilities under the Corporations Act.
• Understand critical deadlines for report preparation, lodgment with ASIC, and provision to members, including COVID-19 relief extensions.
• Recognise the legal and financial risks directors face for inadequate record keeping or failure to comply with reporting duties.
• Explore the nuanced “grandfathering” provisions impacting certain large proprietary companies’ audit and lodgment obligations.
• Identify key components and statutory requirements of financial reports, directors’ reports, and auditor’s reports without full procedural details.
• Consider the implications of electronic record keeping and overseas storage with mandatory notification requirements.