Large private companies have been warned they may face action from Australia’s national corporate regulator if they do not lodge financial accounts.
The Australian Securities and Investments Commission (ASIC) said it was aware some formerly “grandfathered” large proprietary companies may not be lodging financial reports despite being required to do so since 2022.
“We will be contacting a number of these entities and, in certain circumstances, may take action against companies for failing to comply with their reporting obligations,” ASIC Commissioner Kate O’Rourke said in a media release.
An exemption from lodging accounts for some large private companies that met certain criteria was removed in 2022.
O’Rourke said ASIC was urging directors, preparers of financial reports and auditors to be aware of the enduring and ongoing focus areas in its proactive surveillance of financial reports for the year ending 31 December 2024.
She said areas of focus for the upcoming reporting season included:
- impairment and asset values
- provisions
- events after year end and before completing the financial report, and
- disclosures in the financial report and Operating and Financial Review.
“We have highlighted matters that require the most judgement and use of estimates as these areas have previously shown the highest rates of non-compliance,” O’Rourke said.
‘While these areas are emphasised, ASIC expects all reporting entities to ensure the reports are complete, accurate and informative.”