Welcome to Beyond the Numbers, our monthly newsletter which brings you a summary of the latest developments from local and international standard setters and regulators.
Click on one of the Newsletter sections below:
| Top Story |
| Local Reporting |
| Regulations |
| International News |
| In case you missed it |
The End of Grandfathered Proprietary Companies
The Treasury Laws Amendment (2022 Measures No. 1) Act 2022 revoked the relief previously provided to grandfathered exempt proprietary companies from lodging their audited annual financial report with ASIC.
Grandfathered exempt proprietary companies with balance dates ending on or after 10 August 2022 will be subject to the same ASIC lodgment requirements for their annual financial reports as other proprietary companies.
As a reminder, large proprietary companies must prepare general purpose financial statements for financial years beginning on or after 1 July 2021.
AASB Board meeting - August 2022
The Action Alert summarising the key decisions made at the AASB Board meeting on 3 August 2022 is now available.
The matters discussed included:
- Not-for-Profit Private Sector Financial Reporting Framework and Tier 3 Simplified Accounting
The Board expects to issue a Discussion Paper on its proposals for Tier 3 reporting requirements in October 2022 with a 6 month consultation period;
- Post-Implementation Reviews of Not-for-Profit-related Standards
The Board expects to issue an Invitation to Comment on AASB 1059 Service Concession Arrangements: Grantors, in September 2022 with a 150-day comment period; and
- Sustainability Reporting
A joint AASB-AUASB submission was made on the International Sustainability Standards Board’s (ISSB) sustainability-related Exposure Drafts IFRS S1 and IFRS S2.
Queensland reforms cut red tape for registered charities
Charities that conduct fundraising in Queensland which are registered with the ACNC are now only required to report information about their fundraising activities to the ACNC in their Annual Information Statement.
The ACNC will share that information with Queensland’s Office of Fair Trading, eliminating the need for those charities to report to two government bodies.
See more about the ACNC’s red tape reduction program here.
Director ID deadline loom
Directors who were appointed on or before 31 October 2021 have until 30 November this year to apply for a Director Identification Number (Director ID). If you haven’t yet applied, you are strongly encouraged to do so now.
Other deadlines are:
- Intending new directors under the Corporations Act must apply (or have an existing Director ID) before their appointment;
- New directors appointed for the first time between 1 November 2021 and 4 April 2022 should have applied already – they had 28 days from their appointment to apply (unless they have an existing Director ID).
Directors of an Aboriginal or Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 who were appointed on or before 31 October 2022 have until 30 November 2023 to apply, while those appointed from 1 November 2022 must apply before their appointment.
There are significant criminal and civil penalties for failing to obtain a Director ID when required or misusing Director IDs.
For more information about who needs to apply and how, visit the Australian Business Registry Services website.
Tax Transparency Reporting Threshold Reduced
Previously, the Australian Taxation Office (ATO) published tax information on:
- Australian owned private companies with total income in excess of $200 million;
- Australian Public or foreign owned companies with total income in excess of $100 million; and
- Entities that have petroleum resource rent tax (PRRT) payable.
For the 2022-23 financial year, the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 lowers the ‘total income’ threshold for Australian private companies from $200 million to $100 million.
Under the tax transparency regime, the ATO discloses the following individual and aggregated tax return information of affected entities:
- Total income;
- Taxable income;
- Total tax payable; and
- PRRT payable.
Australian private companies impacted by the reduced thresholds should be notified by the ATO that their information will be made publicly available.
Upcoming ASX Reporting deadline
Listed entities are reminded of the following upcoming reporting deadlines:
- Statutory half year financial reports for mining exploration entities (for 31 December year-end) – Tuesday 13 September 2022;
- Statutory audited annual accounts (for 30 June year-end) – Friday 30 September 2022;
- Annual reports (for 30 June year-end) – Monday 31 October 2022;
- Quarterly Reports for Mining and Commitments Test Entities – Monday 31 October 2022.
Listed entities are also reminded that a failure to lodge the relevant documents on time will result in an automatic suspension of the entity’s securities under Listing Rule 17.5.
ASIC’s approach to breach reporting: implementation of reportable situations regime
As part of its 2022-23 priorities, ASIC will focus on improving the operation of the reportable situations regime.
The new regime, which applies to Australian Financial Services (AFS) Licensees and Credit Licensees, commenced on 1 October 2021.
The lodgement of reports by licensees under the reportable situations regime provides a critical source of intelligence to enable ASIC to identify emerging trends of non-compliance in the industry. It also allows detection of significant non-compliant behaviours early, facilitating prompt regulatory action where appropriate.
NZ- Guide for Public Benefit Entities applying PBE IPSAS 41 Financial Instruments
The New Zealand Accounting Standards Board has published a fact sheet and FAQs to help Tier 1 and 2 public sector and not-for-profit entities with non-complex financial instruments apply PBE IPSAS 41 Financial Instruments.
NZ- Guide for Public Benefit Entities applying PBE FRS 48 Service Performance Reporting
The New Zealand Accounting Standards Board has published a short guide on Service Performance Reporting which includes key areas for Tier 1 & 2 public benefit entities to consider when applying PBE FRS 48 Service Performance Reporting.
NZ- Incorporated societies
The New Zealand Accounting Standards Board has provided guidance for incorporated societies registered under Incorporated Societies Act 2022 to assist them understand what financial reporting and audit requirements apply to their circumstances.
Australian Domain Name Changes
Individuals, businesses and organisations are reminded that they have until 20 September 2022 to obtain priority allocation of an ‘.au’ domain name that matches their existing domain name. These shorter simpler domain names will end in simply ‘.au’ (e.g. ‘mybusiness.au’) and will complement existing domain names such as ‘com.au’, ‘net.au’, ‘org.au’, ‘asn.au’, ‘id.au’, ‘gov.au’ and ‘edu.au’.
Domain names that have not been allocated by 20 September 2022 will become available to the general public on a first come, first served basis.
You can reserve your ‘.au’ direct domain name by visiting an auDA accredited registrar.
Next Newsletter – Winter Edition
In the Winter Edition of our NEXT newsletter:
- Nexia Australia Chairman Mal Di Giulio shares his outlook on the current state of the Australian market and raises thought-provoking questions for the medium-to-long term;
- David Montani discusses the new government’s tax policies.
- Martin Olde explores the end of special purpose financial reporting; and
- Geoff Campbell provides his tips on how to avoid claims of ‘wage theft’.
We’re here to support you.
If you would like to discuss further any of the information provided in these updates and how it may impact you, please contact your Nexia Advisor.
