Corporations Act 2001

CHAPTER 2M - FINANCIAL REPORTS, SUSTAINABILITY REPORTS AND AUDIT  

PART 2M.3 - FINANCIAL AND SUSTAINABILITY REPORTING  

Division 1 - Annual financial reports, sustainability reports and directors ' reports  

Note: This Division applies to retail CCIVs with modifications: see Subdivision C of Division 4 of Part 8B.4 .

SECTION 295   CONTENTS OF ANNUAL FINANCIAL REPORT  

Basic contents

295(1)    
The financial report for a financial year consists of:

(a)    the financial statements for the year; and

(b)    the notes to the financial statements; and

(ba)    

for a public company - the consolidated entity disclosure statement required by subsection (3A) ; and

(c)    the directors ' declaration about the statements and notes.

Financial statements

295(2)    

The financial statements for the year are:

(a)    unless paragraph (b) applies - the financial statements in relation to the company, registered scheme, registrable superannuation entity or disclosing entity required by the accounting standards; or

(b)    if the accounting standards require the company, registered scheme, registrable superannuation entity or disclosing entity to prepare financial statements in relation to a consolidated entity - the financial statements in relation to the consolidated entity required by the accounting standards.

Notes to financial statements

295(3)    
The notes to the financial statements are:

(a)    disclosures required by the regulations; and

(b)    notes required by the accounting standards; and

(c)    any other information necessary to give a true and fair view (see section 297 ).

Consolidated entity disclosure statement

295(3A)    

The consolidated entity disclosure statement for a public company ' s financial report for a financial year is:

(a)    

if the accounting standards require the public company to prepare financial statements in relation to a consolidated entity - a statement that includes the following information for each entity that was, at the end of the financial year, part of the consolidated entity:

(i) the entity ' s name (if any) at that time;

(ii) whether, at that time, the entity was a body corporate, partnership, or trust;

(iii) whether, at that time, the entity was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity;

(iv) if the entity is a body corporate - the place at which the entity was incorporated or formed;

(v) if the entity is a body corporate with a share capital - the percentage of the entity ' s issued share capital (excluding any part that carries no right to participate beyond a specified amount in a distribution of either profits or capital) that was held, directly or indirectly, by the public company at that time;

(vi) whether the entity was an Australian resident at that time;

(vii) a list of each foreign jurisdiction (if any) in which the entity was, at that time, a resident for the purposes of the law of the foreign jurisdiction relating to foreign income tax (within the meaning of the Income Tax Assessment Act 1997 ); or

(b)    if paragraph (a) does not apply - a statement to that effect.

295(3B)    

For the purposes of this section, an entity is an Australian resident at the end of a financial year if the entity is:

(a)    an Australian resident (within the meaning of the Income Tax Assessment Act 1997 ) at that time; or

(b)    a partnership at least one member of which is an Australian resident (within the meaning of the Income Tax Assessment Act 1997 ) at that time; or

(c)    a resident trust estate (within the meaning of Division 6 of Part III of the Income Tax Assessment Act 1936 ) in relation to the year of income (within the meaning of that Act) that corresponds to the financial year.

Directors ' declaration

295(4)    
The directors ' declaration is a declaration by the directors:

(a) (Repealed)

(b) (Repealed)

(c)    

whether, in the directors ' opinion, there are reasonable grounds to believe that the company, registered scheme, registrable superannuation entity or disclosing entity will be able to pay its debts as and when they become due and payable; and

(ca)    

if the company, registered scheme, registrable superannuation entity or disclosing entity has included in the notes to the financial statements, in compliance with the accounting standards, an explicit and unreserved statement of compliance with international financial reporting standards - that this statement has been included in the notes to the financial statements; and

(d)    whether, in the directors ' opinion, the financial statement and notes are in accordance with this Act, including:

(i) section 296 (compliance with accounting standards); and

(ii) section 297 (true and fair view); and

(da)    

whether, in the directors ' opinion, the consolidated entity disclosure statement required by subsection (3A) is true and correct; and

(e)    

if the company, disclosing entity or registered scheme is listed - that the directors have been given the declarations required by section 295A .

Note: See paragraph 285(3)(c) for the reference to the debts of a registered scheme.

295(5)    
The declaration must:

(a)    be made in accordance with a resolution of the directors; and

(b)    specify the date on which the declaration is made; and

(c)    be signed by a director.

Note: Section 1228 deals with directors ' resolutions for CCIVs.