Topic 2 - Notes from Fiona re changes in thresholds for small and large proprietary companies PDF

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Notes from Fiona re changes in thresholds for small and large proprietary companies: I wanted to let you know that the thresholds for small and large proprietary companies under s45A(2) of the Corporations Act 2001 changed on 1 July 2019. Please see the notes below. I have added this information in to the topic 2 lecture slides also. From financial years commencing on or after 1 July 2019, a proprietary company is defined as 'large' for a financial year if it satisfies at least two of the below criteria: 1.

the consolidated revenue for the financial year of the company and any entities it controls is $50 million or more; 2. the value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is $25 million or more, and 3. the company and any entities it controls have 100 or more employees at the end of the financial year. Large proprietary companies must prepare and lodge a financial report and a director's report for each financial year. The accounts must be audited unless ASIC grants relief. See s45A(2)

Definition of a large proprietary company - financial years commencing before 30 June 2019 For financial years prior to 30 June 2019, a proprietary company is defined as 'large' if it satisfies at least two of the below criteria: 1.

the consolidated revenue for the financial year of the company and any entities it controls is $25 million or more 2. the value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is $12.5 million or more, and 3. the company and any entities it controls have 50 or more employees at the end of the financial year. Large proprietary companies must prepare and lodge a financial report and a director's report for each financial year. The accounts must be audited unless ASIC grants relief. 

If the company does not meet at least two of the above criteria, it is 'small'. In some circumstances, small proprietary companies may also have to lodge financial reports....