Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.3 - FINANCIAL REPORTING  

Division 7 - Financial years and half-years  

SECTION 323D   MEANING OF FINANCIAL YEAR AND HALF-YEAR - COMPANY, REGISTERED SCHEME AND DISCLOSING ENTITY  
First financial year

323D(1)    
The first financial year for a company, registered scheme or disclosing entity starts on the day on which it is registered or incorporated. It lasts for 12 months or the period (not longer than 18 months) determined by the directors.

Financial years after first year

323D(2)    

Subject to subsections (2A) and (4) , subsequent financial years must:

(a)    start at the end of the previous financial year; and

(b)    be 12 months long.

The directors may determine that the financial year is to be shorter or longer (but not by more than 7 days).

323D(2A)    

A subsequent financial year may last for a period of less than 12 months determined by the directors if:

(a)    the subsequent financial year starts at the end of the previous financial year; and

(b)    there has not been a period during the previous 5 financial years in which there was a financial year of less than 12 months in reliance on this subsection; and

(c)    the change to the subsequent financial year is made in good faith in the best interests of the company, registered scheme or disclosing entity.

Note: For the purposes of paragraph (b), financial years that, in reliance on subsection (2) or (4) , were less than 12 months are disregarded.

Synchronisation of financial years where consolidated financial statements are required

323D(3)    
A company, registered scheme or disclosing entity that has to prepare consolidated financial statements must do whatever is necessary to ensure that the financial years of the consolidated entities are synchronised with its own financial years. It must achieve this synchronisation by the end of 12 months after the situation that calls for consolidation arises.

323D(3A)    

An offence based on subsection (3) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

323D(4)    
To facilitate this synchronisation, the financial year for a controlled entity may be extended or shortened. The extended financial year cannot be longer than 18 months.

Half-years

323D(5)    
A half-year for a company, registered scheme or disclosing entity is the first 6 months of a financial year. The directors may determine that the half-year is to be shorter or longer (but not by more than 7 days).