Special Purpose Financial Report
Listed disclosing entity
public company or listed property
Unlisted disclosing entity (e.g.
registered managed investment
scheme or issuer of debentures to the
Unlisted public company
Large proprietary company
Small proprietary company required
to prepare financial report under the
Corporations Act 2001
Small proprietary company not
to prepare financial report
under Corporations Act 2001
Managed investment scheme
under the Corporations Act
Trust or managed fund not registered
under the Corporations Act 2001
associations, other entities
A “reporting entity” is defined in AASB 3 Business Combinations as: “An entity in respect of which it is reasonable to expect the existence of users who
rely on the entity’s general purpose financial report for information that will be useful to them for making and evaluating decisions about allocations of
resources. A reporting entity can be a single entity or a group comprising a parent and all of its subsidiaries.”
Reporting entities must prepare general purpose financial reports that comply with all applicable accounting standards. Non-reporting entities do not have
to comply with all applicable accounting standards.
An entity’s securities may also be listed on another securities exchange (e.g. Newcastle Stock Exchange or a foreign securities exchange).
Where applicable the financial reporting requirements of the exchange will need to be applied.
Refer to minimum standards for preparation of special purpose financial reports that are consistent with the Australian Securities and Investments
Commission (ASIC) publication “Reporting Requirements for non-reporting entities – An ASIC guide” (July 2005).
A “disclosing entity” as defined by section 111AC of the Corporations Act 2001 is an entity that has issued “enhanced disclosure securities” or “ED
securities”. ED securities include (but are not limited to): securities listed on a licensed market (e.g. Australian Stock Exchange), securities issued
pursuant to a prospectus to more than 100 persons, managed investment schemes with more than 100 unitholders and debentures where a trustee is
required under section 283AA of the Corporations Act 2001. Further details regarding ED securities are contained in sections 111AE, 111AF, 111AFA,
111AG and 111AI.
Listed and unlisted disclosing entities will always meet the definition of a “reporting entity”.
Small proprietary companies are not generally required to prepare and lodge a financial report or have it audited (section 292(2)) under the
Corporations Act 2001, except in the following situations: (a) foreign control, (b) shareholder direction or (c) ASIC direction.
It will be rare for a registered managed investment scheme to be classified as a non-reporting entity.
The financial reporting obligations of partnerships, incorporated associations and other entities may be set out in the applicable governing
legislation. Legislative requirements will vary from state to state.