Beware new thresholds
Small to medium sized business should review the size of their company in line with revised reporting requirements from the Australian Securities and Investments Commission (ASIC).
William Buck Chartered Accountants director of assurance services Priit Taylor said despite ASIC revising the thresholds at which companies are required to lodge their financial reports effective 30 June 2007, some companies may remain unaware of the changes.
The revised thresholds include revenue thresholds increasing from $10 million to $25 million, and gross assets increasing from $5 million to $12.5 million, while the maximum number of employees remaining at 50.
“In our experience, companies can be unaware of the thresholds and therefore do not realise that they are not complying with the Corporations Act,” he said.
“Generally a company that exceeds two or more of the three thresholds is required to lodge their financial report with ASIC.”
According to Priit, ASIC has an active surveillance program in place to detect companies that meet the thresholds but are not lodging their financial reports.
“That’s why it is important to review the size of your company to see if it should be lodging financial reports with ASIC.”
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