Determining main business lines or functions
In determining how many main business lines or functions, take into account the way in which your business is organised.
Your main business lines are not expected to include supporting business lines or functions which do not generate revenue and do not involve development, enhancement, maintenance, protection, or exploitation (DEMPE) of intangible assets. Supporting business lines or functions may include back-office functions such as human resources (HR), finance and legal, and information technology (IT).
- How many main business lines and functions did you engage in during the income year?
Provide the number of main business lines and/or functions the reporting entity was engaged in during the income year.
(LCMSF250)
Provide responses to Questions 2 to 5 for each of the main business lines or functions indicated in Question 1.
- Description of main business line and function during the income year
Provide a detailed description of the main business line or function during the relevant period.
When describing the main business line and/or function, you should consider consistency with other disclosures such as those made in the director’s report section of your annual report (if applicable) or those made in other management or reporting documents.
The description can be up to 10,000 characters (with spaces).
(LCMSF251)
- Strategies deployed in main business line or function during the income year
Provide a detailed description of the business strategies deployed in the main business line and/or function during the income year.
When describing the business strategies, you should consider consistency with other disclosures such as those made in the director’s report section of your annual report (if applicable) or those made in other management or reporting documents.
The description can be up to 10,000 characters (with spaces).
(LCMSF252)
- Description of extent to which main business line or function overlaps with or complements other main business lines or functions during the income year
This question only applies if you indicated at Question 1 that the reporting entity had 2 or more main business lines or functions.
Provide a description of the extent to which the main business line and/or function overlaps with or complements other main business lines or functions during the income year.
The description can be up to 10,000 characters (with spaces).
(LCMSF253)
- Key competitors for main business line or function during the income year
Provide the full names of the key competitors for the main business line or function during the income year.
The full names of the key competitors can be up to 1,000 characters (with spaces).
(LCMSF254)
Main business line or function examples
Example 1: Australian group with 3 main business lines or functions with overlapping functions
Head Co is an Australian resident company and the head company of a multiple entry consolidated group (MEC group) for Australian tax purposes. Head Co’s ultimate parent company is UP Co, a company resident in China. Head Co has an income tax year ending 31 December.
Taking into account the way Head Co's business is organised, Head Co has the following 3 main business lines:
- Wholesale and distribution of products
- Retail and distribution of products
- Franchise business.
Head Co does not need to treat supporting functions such as HR and IT as main business lines if the supporting functions do not generate revenue or involve DEMPE for intangible assets.
|
Question no. |
Question label |
Response |
|---|---|---|
|
1 |
How many main business lines and functions did you engage in during the income year? |
3 |
|
2 |
Description of main business line and function during the income year |
Head Co engages in the wholesale and distribution of [products]. It purchases products from third-party manufacturers and sells finished products to third-party retailers, businesses or other intermediaries. The functions of this business line include warehousing, inventory management, logistics and transportation to ensure efficient delivery of products to customers. |
|
3 |
Strategies deployed in main business line or function during the income year |
Head Co aims to establish strong relationships with both suppliers and customers to ensure a reliable supply chain and consistent demand to maintain its earnings margins. Head Co also aims to invest in technology to improve efficiency in the management of its inventory and logistics. Additionally, Head Co aims to diversify its product range and enter new markets. |
|
4 |
Description of extent to which main business lines or functions overlaps with or complements other main business lines or functions |
The wholesale distribution is the core of Head Co’s operations. It complements its retail and franchise business by providing the necessary inventory to its retail and franchise businesses. The retail and franchise owners focus on the delivery of products to end consumers while maintaining brand standards and customer satisfaction. The integration of technology and systems will also assist the three business lines with driving improved efficiency and cost-effective structures. |
|
5 |
Key competitors for main business line or function during the income year |
[Key competitors] |
|
2 |
Description of main business line and function during the income year |
Head Co also engages in retail and distribution of products through purchasing inventory from its wholesale business and |
|
3 |
Strategies deployed in main business line or function during the income year |
[Detailed description of the retail and distribution strategy] |
|
4 |
Description of extent to which main business lines or functions overlaps with or complements other main business lines or functions |
[Description of extent to which main business lines or functions overlaps with or complements other main business lines or functions] |
|
5 |
Key competitors for main business line or function during the income year |
[Key competitors] |
|
2 |
Description of main business line and function during the income year |
Head Co generates franchise fees from services provided to its franchisees as franchisor, such as:
|
|
3 |
Strategies deployed in main business line or function during the income year |
[Detailed description of the franchise business strategy] |
|
4 |
Description of extent to which main business lines or functions overlaps with or complements other main business lines or functions |
[Description, including the extent of overlap to the extent not already described in the description of the extent of overlap provided for the other business lines and/or functions in this short form local file] |
|
5 |
Key competitors for main business line or function during the income year |
[Key competitors] |
End of example