Corporations Act 2001 and Financial Reporting: An ASX Case Study

This case study examines the financial reporting requirements for ASX-listed companies in accordance with the Corporations Act 2001, focusing on the role of the Australian Securities Exchange (ASX), the Australian Securities and Investments Commission (ASIC), and the Australian Taxation Office (ATO). It details the obligations related to financial year reports, including the Business Activity Statement (BAS) and annual reports, as well as the importance of compliance with the Australian Accounting Standards Board (AASB). The study contrasts these requirements with those of small proprietary companies, highlighting the exemptions they may have regarding financial reporting, such as the preparation of audited financial statements, unless directed by ASIC or shareholders. The analysis explores the criteria that define a small proprietary company, the financial records they must maintain, and the circumstances under which they may need to produce financial reports, emphasizing the differing levels of regulatory scrutiny and the need for consistent financial reporting to ensure investor confidence and integrity in the market. The case study concludes by summarizing the key differences in financial reporting obligations between listed and proprietary companies.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Requirements under ASX listed companies................................................................................3
Requirements on the basis of small proprietary companies.........................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
This report will describe the rule and regulations for ASX limited companies on the basis
of Australian Government Federal Register of Legislation dealing with Corporations Act 2001. It
will formulate what are rules are perceived by organization in terms of financial year reports.
Further it would be discussing about requirements under small proprietary companies while
contrasting with listed companies.
MAIN BODY
Requirements under ASX listed companies
The corporations Act 2001, articulates the matter of formation and operation of company
such as in conjunction with constitution which may be accessible by company. Duties of officers,
takeover and fundraising. The financial requirement of ASX listed companies and small
proprietary companies would make the certain difference which consist of rule and regulation are
being followed on the financial year by conducting the data for business operations. While in the
context of Sydney Ltd being listed as an ASX firm on the behalf of that it aims to procure the
investor confidence as well as integrity in economy, capital markets and in corporations. The
exponent of this clearly describes that consistent financial report are formed in according to
legislative wants (Lodhia, Kaur, & Stone, 2020). According to the Corporations Act 2001, the
requirements for Sydney Ltd will require to report to the Australian Taxation Office, Australian
securities exchange and Australian Securities and investments commission. In the business
activity statement organization should require to lodge Business Activity Statement to Australian
Taxation Office for devising payments and report their tax obligations. They may also require to
lodge BAS which is the personalized to business concerns. It can be lodged accordingly on
monthly, quarter or annual basis varying upon when the instalments are due. Similarly, financial
reporting requirement would be concerned with preparing and lodgement of annual reports with
ASIC by the end of financial year. Those reports are required to be audited whereas in some
situations companies may be exempt from financial reporting. In regard to the same Australian
Stock Exchange companies are bounded by continuous as well as periodic disclosure rules. ASX
procures data on requirements in listing rules and regulations (Rijsdijk and et.al., 2022). The
Accounting Standards are rigid by AASB which is independent Australian Government agency.
It can be said that the standards are the legislative wantrs for such corporations which must be
implemented to other general perspective financial reports of private and public reportive

organization. In similar way these Australian Standards cope up with requirements of
International Financial Reporting Standards. Whereas mostly the standard setting is only
responsible for IASB and on the other hand AASB manages standard setting quality over matters
particularly aligned to Australia.
Requirements on the basis of small proprietary companies
Small proprietary companies usually do not require any kind of reports to be prepared, but they
specifically required to maintain the adequate financial records. Proprietary company is also
known as small proprietary company for financial year if it satisfies the two major requirements
such as consolidated gross operating revenue for financial year of organization and entities are
controlled is less than $25 million (Financial reporting in Australia, 2022). The company or
entities controls having lower than 50 working employees by the end of financial year. If
Sydney Ltd belongs to small proprietary it will require forming financial report which cover
annual profit and loss statements, balance sheet with the statements of cash flow. The director
must report about business operations, paid dividends or options issued (Sri, & Arief, 2018).
Although, corporations act 2001 may not need small proprietary firm to prepare financial reports
as mentioned in the above circumstances, so the company need to alter annual financial reports
for the purpose such as income tax laws. Moreover, on the behalf of small proprietary Sydney
Ltd do not require to form their financial report unless and until they are directed by ASIC or
shareholders. Thus, generally there is not requirement for preparing and lodging audited financial
reports on annual basis unless the organization is possessed by foreign company. Hence, it can
be said that listed companies must lodge financial statements such as annual director report as
well as audited account with ASIC unless it has exemption. On the other hand proprietary
companies would b required to do so, but they are more liable to be exempt.
CONCLUSION
From the above text it had been identified rule and regulations for ASX limited
companies on the basis of Australian Government Federal Register of Legislation dealing with
Corporations Act 2001. It had formulate what are rules are perceived by organization in terms of
financial year reports. Further it had been discussing about requirements under small proprietary
companies while contrasting with listed companies.

REFERENCES
Books and journals
Lodhia, S., Kaur, A., & Stone, G. (2020). The use of social media as a legitimation tool for
sustainability reporting: A study of the top 50 Australian Stock Exchange (ASX) listed
companies. Meditari Accountancy Research. 28(4). 613-632.
Sri, W. I. F., & Arief, B. M. (2018). Relationship between Company Financial Performance,
Characteristic and Environmental Disclosure of ASX Listed Companies. In E3S Web of
Conferences (Vol. 73, p. 10024). EDP Sciences.
Rijsdijk, T. and et.al. (2022). Confirming the Lassonde Curve through life cycle analysis and its
effect on share price: A case study of three ASX listed gold companies. Resources
Policy. 77. 102704.
Online
Financial reporting in Australia. 2022. [online]. Available
through<https://www.austrade.gov.au/international/invest/guide-to-investing/running-a-
business/understanding-australian-business-regulation/financial-reporting-in-australia>

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