ASIC crackdown on Pty Co audits

By Kylee Byrne - June 5, 2017

The Australian Securities and Investments Commission (ASIC) is focusing on proprietary companies and foreign controlled small proprietaries who are required to lodge financial statements but have failed to do so.

In recent weeks, ASIC has issued formal requests to a significant number of proprietary companies requesting directors to confirm whether, for the 2016 financial year, the company was:

  • a large proprietary company
  • a foreign controlled small proprietary company, or
  • a small proprietary company

For relevant proprietary companies (those that are ‘large’ or foreign controlled’) ASIC is requesting they conform and lodge the outstanding audited financial statements as a matter of urgency.

In accordance with the Corporations Act 2001, a proprietary company is a ‘large proprietary company’ for a financial year if it satisfies at least two of the following three criteria:

  • the consolidated revenue for the financial year of the company and the entities it controls (if any) is $25 million, or more
  • the value of the consolidated gross assets at the end of the financial year of the company and the entities it controls (if any) is $12.5 million, or more
  • the company and the entities it controls (if any) have 50, or more employees at the end of the financial year

There are limited exemptions of these requirements that could provide relief.  Contact your Pitcher Partners Business Advisor to see if you qualify.

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