Chapter 13 Chapter 13 Reports and Reports and Disclosures I: Disclosures I: Overview Overview
Dec 22, 2015
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