Chapter 13Chapter 13

Reports and Disclosures I: Reports and Disclosures I:

OverviewOverview

Chapter 13Chapter 13

Reports and Disclosures I: Reports and Disclosures I:

OverviewOverview

Lecture TopicsLecture Topics

• Legislative requirements

• Content of annual financial reports

Lecture ReferencesLecture References

• Text - Chapter 13• AASBs - 1034

- 1018- 1004- 1026

• Corporations Act (part 2M)

Key ConceptsKey Concepts

• Disclosure• Annual report• Presentation• Disclosure

Legislative RequirementsLegislative Requirements

• Corporations Act (part 2M)– Reports produced– Timing of reports– Minimum content

Legislative RequirementsLegislative Requirements

• Applies to:– Disclosing entities– Public companies– Large proprietary companies– Managed investment schemes– Some small proprietary companies

Legislative RequirementsLegislative Requirements

• Regulation of financial reporting • Reports Required

– Financial statements– Director’s declaration– Auditor’s report– Director’s report

• Lodgement with ASIC

Legislative RequirementsLegislative Requirements

• Classification of entities – Disclosing entity– Public company– Large proprietary company– Small proprietary company– Managed investment schemes– Reporting entity

Legislative RequirementsLegislative Requirements

• Timing of reports – Reporting lag– Length of reporting period– Reporting frequency

Legislative RequirementsLegislative Requirements

• Reporting to regulators– Lodgement with ASIC– Stock Exchange requirements

• Record-keeping requirements– “True and fair”

Content of Annual Financial ReportsContent of Annual Financial Reports

• Core disclosure standards– AASBs 1034, 1018, 1040 and 1026

• scope• recognised vs disclosed• role of notes• presentation vs disclosure

Content of Annual Financial ReportsContent of Annual Financial Reports

• AASB 1034: The disclosure framework– General requirements

• consistency of presentation• notes to financial statements• specific non-financial disclosures• other note disclosures• comparative information

Content of Annual Financial ReportsContent of Annual Financial Reports

• Directors’ declaration– Part of annual financial report– Financial statements and notes comply with

stds– Give a ‘true and fair’ view– Entity able to pay debts– Comply with the law

Content of Annual Financial ReportsContent of Annual Financial Reports

• Other standards controlling general disclosure– AASB 1031: Materiality

• separate vs aggregate disclosure• policy disclosure• assessment criteria• definition• user needs focus

Content of Annual Financial ReportsContent of Annual Financial Reports

• Other standards controlling general disclosure– AASB 1001: Accounting policies

• policy choice• general disclosures• changes in accounting policy

Content of Annual Financial ReportsContent of Annual Financial Reports

• Other standards controlling general disclosure– AASB 1002: events occurring after reporting

date• required disclosures• type 1 and 2 events• applying AASB 1002 and cut-off issues• setting-off prohibited

Other ReportsOther Reports

• Annual directors’ report– General information– Specific information– Special rules

• public companies• listed companies and schemes• registered schemes

Other ReportsOther Reports

• Auditor’s report– Audit and the annual report– Form an opinion

• in accordance with the Act and AASBs• true and fair view• received all necessary information• financial records properly kept• records required by the Act kept

Reporting Obligations ofReporting Obligations ofNon-reporting EntitiesNon-reporting Entities

– Preparation of annual report (other than small proprietary companies)

• financial report• directors’ report and declaration

– Copies of annual report sent to members– AGM for public companies– Annual report lodged with ASIC

Where to get more informationWhere to get more information

• Other courses• List books, articles, electronic sources