Australia Financial Statements 2

---
name: australia-financial-statements-2
description: "Determine Australian company financial reporting obligations, select applicable standards, prepare accounts and arrange assurance and lodgement."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/australia-financial-statements-2"
  jurisdiction: "AU"
  last_updated: "2026-09-08"
  reviewed_by: "Ryan Duguid"
---

# Australian company financial statements

## Australian company financial statements

Determine the reporting obligation and applicable accounting framework before preparing the accounts. This guide covers company reporting under Chapter 2M of the Corporations Act, using sources checked on 8 September 2026. Tax returns, management accounts and statutory financial reports serve different purposes and may require different adjustments.

## Establish who must report

- **Large proprietary company thresholds (meets at least two)** — revenue of $50 million, gross assets of $25 million, or 100 employees  _([ASIC: company financial reports](https://www.asic.gov.au/for-business-and-companies/companies/company-financial-reports))_
- **Recording and identifying reporting duties** — Record the company type, ownership and control, reporting period, fundraising history and any regulator or member direction. A proprietary company is large if it meets at least two of these consolidated thresholds: revenue of $50 million, gross assets of $25 million, or 100 employees. Apply the statutory measurement dates and controlled-entity rules. Large proprietary companies generally prepare, audit and lodge annual reports. Small companies can also have reporting obligations, including foreign-controlled companies and those with crowd-sourced funding shareholders. Identify the exact duty to prepare, audit, send to members and lodge; those duties are separate. Check the terms of any direction or relief rather than assuming that a preparation requirement necessarily settles every other obligation.  _([ASIC: company financial reports](https://www.asic.gov.au/for-business-and-companies/companies/company-financial-reports))_
- **CSF audit requirement threshold** — Proprietary companies using the CSF regime prepare annual financial and directors' reports. The CSF audit requirement applies once they have raised $3 million or more through CSF offers. A review is not a universal substitute for an audit.  _([ASIC: crowd-sourced funding](https://www.asic.gov.au/crowd-sourced-funding))_
- **Public companies limited by guarantee and charities** — Public companies limited by guarantee and ACNC-registered charities have specific rules. Foreign-controlled company relief also has conditions and procedural requirements. Retain the legal basis and evidence for any exemption used.  _([ASIC: company financial reports](https://www.asic.gov.au/for-business-and-companies/companies/company-financial-reports))_

## Select the standards for the period

- **Determining tier and general purpose statements** — Establish whether the entity must prepare general purpose financial statements and whether it qualifies for Tier 2. Public accountability and the applicable legislation matter; company size alone does not determine the tier. Tier 2 generally uses Australian Accounting Standards recognition and measurement with simplified disclosures under AASB 1060. Do not assume that calling accounts special purpose avoids the applicable reporting requirements.  _(AASB 1060)_
- **AASB 18 commencement** — Select the actual standards compilation applicable to the reporting period, including any permitted early adoption. AASB 18 replaces AASB 101 for relevant for-profit Tier 1 entities for annual periods beginning on or after 1 January 2027, with earlier application permitted. The commencement test concerns the start of the reporting period, not the date the accounts are signed.  _([AASB: AASB 18 issued](https://www.aasb.gov.au/news/new-standard-aasb-18-issued/))_
- **ED 341 proposed changes** — As at this review date, ED 341 proposes changes to align AASB 1060 with AASB 18. An exposure draft is not an operative standard. Do not automatically impose AASB 18's Tier 1 timetable on Tier 2 accounts.  _([AASB: ED 341](https://www.aasb.gov.au/news/open-for-comment-ed-341-updating-aasb-1060-to-align-with-aasb-18-classification-and-presentation-requirements/))_

## Prepare the financial report

- **Preparing applicable statements** — Prepare the applicable statements of financial position, profit or loss and other comprehensive income, changes in equity, cash flows and notes, including comparatives. Check any specific permitted exception, such as the AASB 1060 option for a statement of income and retained earnings in qualifying circumstances. Directors' reports and declarations have separate statutory content and approval requirements.  _([AASB 1060, paragraphs 25–30](https://standards.aasb.gov.au/aasb-1060-aug-2025))_
- **Materiality, presentation and currency** — Use materiality and the entity's transactions to determine presentation and disclosures. A generic list of account names cannot establish compliance. For public companies, check consolidated entity disclosure statement requirements. Functional and presentation currency need analysis under AASB 121; Australian dollar presentation is not compulsory in every case.  _([ASIC: report contents and currency](https://www.asic.gov.au/for-business-and-companies/companies/company-financial-reports))_
- **Reconciliation and review of balances** — Reconcile the trial balance to ledgers and external evidence. Review revenue cut-off, inventories, receivables, leases, asset values, provisions, employee benefits, tax, related parties, subsequent events and going concern. Apply the relevant recognition and measurement standard to each material balance rather than copying tax depreciation or tax deductibility into the accounts.  _(AASB 121)_
- **Retaining adjustment support and reconciliations** — For each adjustment, retain the calculation, evidence, accounting conclusion and disclosure effect. Reconcile opening balances to the approved previous report, consolidation entries to entity records, and closing cash to the cash flow statement. Investigate differences before approval.

## Arrange assurance and lodgement

- **Auditor appointment and adjustments** — Confirm the auditor's appointment and the required engagement early. Address audit adjustments and unresolved matters before directors approve the report. Do not describe an unaudited draft as audited or an automated review as an auditor's opinion.
- **ASIC lodgement deadlines** — Annual reports are generally due to ASIC within three months for disclosing entities and registered schemes, and four months for other reporting companies. Disclosing entities also have half-year obligations, generally within 75 days. Member reporting and AGM deadlines require separate checks.  _([ASIC: users of financial reports](https://www.asic.gov.au/regulatory-resources/financial-reporting-and-audit/users-of-financial-reports), [ASIC: company reporting deadlines](https://www.asic.gov.au/for-business-and-companies/companies/company-financial-reports))_
- **Mandatory sustainability reporting** — Screen separately for mandatory sustainability reporting, including the phased commencement rules. It is a separate statutory report and is not satisfied by adding a generic environmental note to the financial statements.  _([ASIC: Regulatory Guide 280](https://download.asic.gov.au/media/j4rhwyiz/rg280-published-31-march-2025.pdf))_
- **Retention and lodgement verification** — Retain the signed report, directors' approval, audit report where required, member delivery evidence and lodgement receipt. Confirm that the lodged document is the approved version and investigate any rejected lodgement.

> Contributed by Ryan Duguid.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-09-08. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `australia-financial-statements-2` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/australia-financial-statements-2. If neither is available, confirm every figure against the official source pages cited above before relying on it.