ASIC has made several recent media announcements aimed to simplify the financial reporting process for 30 June 2021 year-ends.
Extension of 30 June 2021 reporting deadlines
ASIC has further extended the relief under which it is offering entities an additional month to lodge their financial reports for entities with balance sheet dates between 23 June 2021 and 7 July 2021.
However, entities with a reporting date between 8 January 2021 and 22 June 2021 should note that no extension is available to them.
This means that for entities with a 30 June 2021 year-end:
- the deadline for listed companies is extended until 31 October 2021 (but see below in respect of Appendix 4E)
- the deadline for unlisted disclosing entities and registered schemes is extended until 31 October 2021
- the deadline for Proprietary Companies and other non-disclosing entities is extended to 30 November 2021
- lodgement deadlines for Australian Financial Services Licenses, and for Compliance Plans, are also extended by one month
As with previous extensions, the ASX has not extended the deadline for the lodgement of Appendix 4E under ASX Listing rules 4.3A and 4.3B. This means that non-exploration entities will still have to lodge unaudited financial statements by 31 August 2021. Where listed entities intend to rely on this extension, they must disclose this to the market before 30 September 2021 and state the reasons why they have used the extension.
Commenting on the extension, Ralph Martin, National Technical Director of RSM Australia said “while Australia has been fortunate to escape the extent of disruption caused by COVID to many other countries, we continue to experience the effects of closed international borders and restrictions on domestic travel, while the possibility of further “snap” lockdowns in response to individual outbreaks remains. This creates challenges for both preparers and auditors of financial statements, and ASIC’s decision to offer this relief brings welcome flexibility to all parties.”
Extension of “No Action” position on AGMs
ASIC’s existing “no action” position for entities that are not able to hold their AGM within five months of their year-end will be retained, as long as they do so within seven months.
ASIC continues to support the use of technology solutions that allow digital AGMs. Any AGM held using virtual technology should be conducted in such a way that allows questions to be asked, comments to be made, and votes to be cast, in a manner that provides a reasonable opportunity for members to effectively participate.
AFS Licensees may use lease assets to satisfy licence requirements
ASIC has announced changes to the financial requirements associated with Australian Financial Services Licenses (“AFSLs”) in relation to the treatment of leased assets. Under AASB 16 Leases, most leases result in a lease liability and a corresponding right-of-use asset. Previously ASIC required AFSL holders to exclude right-of-use assets, but include the corresponding lease liability in their net tangible asset calculations. In future, ASIC will allow holders of AFSLs to include right-of-use assets in their net tangible assets, and, if the right-of-use asset is classified as a current asset, to include it in the calculation of adjusted surplus liquid funds and surplus liquid funds.
“We welcome this decision which adopts the sensible approach of making the treatment of lease assets consistent between Australian Accounting Standards and Australian Financial Services Licenses,” commented Ralph Martin.
“RSM Australia has long supported this change, which removes an unnecessary source of uncertainty and confusion for AFSL holders.”
For more information
If you require further information or have any questions regarding the financial reporting deadlines, contact your local RSM adviser today.