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v10Australia
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1---
2name: australia-financial-statements
3description: >
4 Use this skill when preparing, reviewing, or advising on annual financial statements for an Australian company. Trigger on phrases like "ASIC financial report", "AASB", "Australian Accounting Standards", "general purpose financial statements", "special purpose financial statements", "large proprietary company", "small proprietary company", "directors' report Australia", "audit Australia", "Form 388", "Corporations Act 2001 reporting", or any question about preparing and filing statutory accounts under the Corporations Act 2001. Covers AASB frameworks, size thresholds (large/small proprietary), required statements, formats, notes, lodgement deadlines, and audit requirements.
5version: 1.0
6jurisdiction: AU
7category: financial-statements
8depends_on:
9 - financial-statements-workflow-base
10---
11 
12# Australia Financial Statements Skill v1.0
13 
14---
15 
16## Section 1 -- Quick Reference
17 
18| Field | Value |
19|---|---|
20| Country | Australia (Commonwealth of Australia) |
21| Currency | AUD |
22| Filing authority | Australian Securities and Investments Commission (ASIC) |
23| Primary legislation | Corporations Act 2001 (Cth), Chapter 2M |
24| Supporting legislation | Corporations Regulations 2001; ASIC Regulatory Guides |
25| Accounting standards | Australian Accounting Standards (AASB) — substantially IFRS-equivalent |
26| Financial year | Usually 1 July – 30 June; any 12-month period permitted |
27| Lodgement deadline | 4 months after year-end (general); 3 months (disclosing entities) |
28| Late lodgement penalty | Civil penalty; ASIC may impose up to AUD 1,110 per day |
29| Digital filing | ASIC Regulatory Portal (online Form 388 lodgement) |
30 
31---
32 
33## Section 2 -- Reporting Framework
34 
35| Entity type | Applicable standard |
36|---|---|
37| Listed entities / disclosing entities | Full AASB (Tier 1 — IFRS equivalent) |
38| Large proprietary companies | AASB (Tier 1 or Tier 2 — Simplified Disclosures) |
39| Small proprietary companies (reporting) | AASB (usually Tier 2 — Simplified Disclosures) |
40| Small proprietary companies (non-reporting) | Generally no public reporting obligation |
41| Public companies | AASB (Tier 1 or Tier 2) |
42| Not-for-profit (large) | AASB with NFP-specific paragraphs |
43 
44### AASB Tier system
45 
46- **Tier 1**: Full IFRS recognition, measurement, and disclosure (AASB 101–AASB 17)
47- **Tier 2 — Simplified Disclosures**: Same recognition and measurement as Tier 1, reduced disclosures (AASB 1060)
48 
49---
50 
51## Section 3 -- Size Thresholds
52 
53### Large proprietary company (s.45A Corporations Act)
54 
55A proprietary company is **large** for a financial year if it satisfies at least **2 of 3**:
56 
57| Criterion | Threshold (from 1 July 2019) |
58|---|---|
59| Consolidated revenue | ≥ AUD 50,000,000 |
60| Consolidated gross assets (year-end) | ≥ AUD 25,000,000 |
61| Employees (year-end) | ≥ 100 |
62 
63If fewer than 2 criteria are met → **small** proprietary company.
64 
65### Reporting obligations by entity type
66 
67| Entity | Must prepare financial report? | Must lodge with ASIC? | Must audit? |
68|---|---|---|---|
69| Large proprietary | Yes | Yes (Form 388) | Yes |
70| Small proprietary (general) | No (unless directed) | No | No |
71| Small proprietary (foreign-controlled) | Yes | Yes | Yes |
72| Small proprietary (CSF shareholders) | Yes | Yes | Yes (or review) |
73| Public company | Yes | Yes | Yes |
74| Disclosing entity | Yes | Yes | Yes |
75 
76---
77 
78## Section 4 -- Required Financial Statements
79 
80Under s.295 and s.296 Corporations Act + AASB standards:
81 
82| Document | Tier 1 (Full AASB) | Tier 2 (Simplified) |
83|---|---|---|
84| Statement of Financial Position (Balance sheet) | Required | Required |
85| Statement of Profit or Loss and Other Comprehensive Income | Required | Required |
86| Statement of Changes in Equity | Required | Required |
87| Statement of Cash Flows | Required | Required |
88| Notes to the Financial Statements | Required (full IFRS) | Required (reduced — AASB 1060) |
89| Directors' Report (s.298–300) | Required | Required |
90| Directors' Declaration (s.295(4)) | Required | Required |
91| Auditor's Report | Required | Required |
92 
93---
94 
95## Section 5 -- Year-End Adjustments Checklist
96 
97| # | Adjustment | Australia-specific notes |
98|---|---|---|
99| 1 | Depreciation | AASB 116; systematic allocation; annual review of useful life and residual value |
100| 2 | Provisions | AASB 137; present obligation, probable outflow, reliable estimate |
101| 3 | Employee benefits | AASB 119; annual leave, long service leave (probability-weighted for LSL < 7 years) |
102| 4 | Impairment | AASB 136; compare carrying amount to recoverable amount |
103| 5 | Expected credit losses | AASB 9; simplified approach for trade receivables (lifetime ECL) |
104| 6 | Inventory | AASB 102; lower of cost (FIFO/weighted average) and NRV; no LIFO |
105| 7 | Deferred tax | AASB 112; temporary differences; company rate 25% (base rate entity) or 30% |
106| 8 | Lease accounting | AASB 16; right-of-use asset + lease liability (exemptions for short-term/low-value) |
107| 9 | Revenue recognition | AASB 15; five-step model; performance obligations |
108| 10 | Financial instruments | AASB 9; classification and measurement; hedge accounting |
109| 11 | Foreign currency | AASB 121; monetary items at closing rate |
110| 12 | Government grants | AASB 120; recognised when reasonable assurance of compliance |
111 
112---
113 
114## Section 6 -- Statement of Profit or Loss Format
115 
116AASB 101 permits classification by nature or function. By function (most common for corporates):
117 
118```
119Revenue
120Cost of sales
121 ─── Gross profit ───
122Other income
123Distribution expenses
124Administrative expenses
125Other expenses
126 ─── Operating profit ───
127Finance income
128Finance costs
129Share of profit of associates/JVs
130 ─── Profit before income tax ───
131Income tax expense
132 ─── Profit from continuing operations ───
133Profit from discontinued operations (net of tax)
134 ─── Profit for the year ───
135 
136Other comprehensive income:
137 Items that will not be reclassified to profit or loss
138 Items that may be reclassified to profit or loss
139 ─── Total comprehensive income for the year ───
140```
141 
142---
143 
144## Section 7 -- Statement of Financial Position Format
145 
146AASB 101 — current/non-current distinction:
147 
148```
149ASSETS
150 
151Current assets
152 Cash and cash equivalents
153 Trade and other receivables
154 Inventories
155 Current tax assets
156 Other current assets
157 
158Non-current assets
159 Property, plant and equipment
160 Right-of-use assets
161 Investment properties
162 Intangible assets
163 Goodwill
164 Investments in associates
165 Deferred tax assets
166 Other non-current assets
167 
168Total assets
169 
170─────────────────────────────────────
171 
172LIABILITIES
173 
174Current liabilities
175 Trade and other payables
176 Borrowings (current portion)
177 Lease liabilities (current)
178 Current tax liabilities
179 Provisions (current)
180 Other current liabilities
181 
182Non-current liabilities
183 Borrowings
184 Lease liabilities
185 Deferred tax liabilities
186 Provisions (non-current)
187 Other non-current liabilities
188 
189Total liabilities
190 
191─────────────────────────────────────
192 
193NET ASSETS
194 
195EQUITY
196 Issued capital
197 Reserves
198 Retained earnings
199Total equity
200```
201 
202---
203 
204## Section 8 -- Notes to Financial Statements
205 
206| # | Disclosure | Tier 1 (Full) | Tier 2 (Simplified) |
207|---|---|---|---|
208| 1 | Basis of preparation and accounting policies | Required (AASB 101) | Required (AASB 1060) |
209| 2 | Revenue disaggregation | Required (AASB 15) | Simplified |
210| 3 | Employee benefits | Required (AASB 119) | Simplified |
211| 4 | Income tax | Required (AASB 112) | Simplified |
212| 5 | Property, plant and equipment | Required (AASB 116) | Simplified |
213| 6 | Leases | Required (AASB 16) | Simplified |
214| 7 | Financial instruments | Required (AASB 7) | Significantly reduced |
215| 8 | Related party transactions | Required (AASB 124) | Required |
216| 9 | Contingencies and commitments | Required (AASB 137) | Required |
217| 10 | Subsequent events | Required (AASB 110) | Required |
218| 11 | Key management personnel compensation | Required (AASB 124) | Required |
219| 12 | Segment information | Required (AASB 8) — listed only | Not required |
220 
221---
222 
223## Section 9 -- Filing (Lodgement) Requirements
224 
225| Item | Detail |
226|---|---|
227| Filing authority | ASIC |
228| Filing form | Form 388 (Copy of Financial Statements and Reports) |
229| Lodgement method | ASIC Regulatory Portal (online) |
230| Deadline — disclosing entities | 3 months after financial year-end |
231| Deadline — all others | 4 months after financial year-end |
232| Documents lodged | Financial report + directors' report + auditor's report |
233| Fee | No filing fee for Form 388 |
234| Late lodgement | Civil penalty provisions; ASIC may impose administrative penalties |
235| Annual review fee | Separate from lodgement (AUD 310 for proprietary companies, 2024) |
236| Extension | Possible by application to ASIC under s.340 |
237 
238### Small proprietary companies — exceptions requiring lodgement
239 
240- Foreign-controlled (s.292(2)(b))
241- ASIC direction (s.294)
242- Shareholder direction (≥5% vote, s.293)
243- CSF shareholders (s.292(2)(c))
244 
245---
246 
247## Section 10 -- Audit Requirements
248 
249| Category | Requirement |
250|---|---|
251| Large proprietary company | Mandatory audit |
252| Small proprietary (general) | No audit required |
253| Small proprietary (foreign-controlled) | Audit required (unless ASIC relief) |
254| Public company | Mandatory audit |
255| Disclosing entity | Mandatory audit |
256| Registered scheme | Mandatory audit |
257| Small proprietary (CSF shareholders) | Audit or review (s.292) |
258 
259### ASIC relief instruments
260 
261- **ASIC Corporations (Audit Relief) Instrument 2016/784**: Allows certain large proprietary companies controlled by a foreign parent to obtain audit relief if consolidated accounts of the foreign parent are lodged
262- **ASIC Corporations (Foreign-Controlled Company Reports) Instrument 2017/204**: Relief for certain small foreign-controlled proprietary companies
263 
264### Auditor qualification
265 
266Registered company auditor under Part 9.2 of the Corporations Act (registered with ASIC). For audit of disclosing entities, the auditor must meet additional independence requirements under Part 2M.4 Division 3.
267 
268---
269 
270## Disclaimer
271 
272This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
273 

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Use this skill when preparing, reviewing, or advising on annual financial statements for an Australian company. Trigger on phrases like "ASIC financial report", "AASB", "Australian Accounting Standards", "general purpose financial statements", "special purpose financial statements", "large proprietary company", "small proprietary company", "directors' report Australia", "audit Australia", "Form 388", "Corporations Act 2001 reporting", or any question about preparing and filing statutory accounts under the Corporations Act 2001. Covers AASB frameworks, size thresholds (large/small proprietary), required statements, formats, notes, lodgement deadlines, and audit requirements.

AUty-2025

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