The Australian Government has proposed to raise financial reporting thresholds for proprietary companies by 2020.
In a joint media release from the Hon Josh Frydenberg MP and Senator Hon Michaelia Cash, it was announced that approximately a third of large proprietary companies will no longer be classified as large and will therefore no longer be required to comply with financial reporting and audit requirements.
Currently, proprietary companies are considered to be ‘large’, for the purposes of ASIC reporting requirements, if they meet at least any two of the following three thresholds for a given financial year:
$25 million or more in consolidated revenue;
$12.5 million or more in consolidated gross assets; or
50 or more employees.
These ‘large’ proprietary companies are required to prepare and lodge a financial report, a director’s report and an auditor’s report with ASIC each financial year.
The proposed thresholds will be doubled:
$50 million or more in consolidated revenue;
$25 million or more in consolidated gross assets; or
100 or more employees.
Click below to find guidance on the current reporting obligations: