THE CORPORATIONS LAW

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT

PART 2M.3 - FINANCIAL REPORTING

Division 7 - Financial years and half-years

SECTION 323D   FINANCIAL YEARS AND HALF-YEARS  

323D(1)  First financial year.  

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.

323D(2)  Financial years after first year.  

Subject to subsection (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(3)  Synchronisation of financial years where consolidated financial statements are required.  

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(4)  [Facilitating synchronisation]  

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.

323D(5)  Half-years.  

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).