Chapter 16 Accounts and Reporting www.learnnowbiz.com Corporate Governance

Corporate Reporting Financial records required under the Corporations Act: 1. Records that: Correctly record and explain transactions and financial position and performance and, Would enable true and fair financial statements to be prepared and audited. Must be retained for 7 years after the transaction has been completed. www.learnnowbiz.com Corporate Governance

Corporate Reporting Continued 2. Minute Books (S251A) record: Proceedings and resolutions of members’ and directors’ meetings. Resolutions passed with a meeting. Declarations by the director. Members are entitled to inspect and request copies of these under S251B. www.learnnowbiz.com Corporate Governance

Corporate Reporting Continued 3. Register of members, option holders and debenture holders, S168-173 4. Register of charges, S271. In respect of creditors whom have been provided assets as security. 5. Register of relevant interests: S627DA www.learnnowbiz.com Corporate Governance

Lodgement with ASIC S121 – a company must lodge an address in Australia as the registered office. This serves as a point of contact for the public, as well as a location to store records. Annual Review ASIC require an annual review and an annual review fee. The review date is the anniversary of the company’s registration. Other lodgements include informing ASIC of certain changes when they occur, such as a change in director. www.learnnowbiz.com Corporate Governance

Financial Reporting Financial reporting requirements differ according to company size and nature: www.learnnowbiz.com Corporate Governance

Financial Reports S295 defines financial reports as including: Financial statements for the year for the company Statement of Comprehensive Income Statement of Financial Balance Statement of Cash Flows Notes A directors’ declaration www.learnnowbiz.com Corporate Governance

Other Requirements Must comply with S296 accounting standards. Must give a true and fair view of financial standing. Must be audited according to S301. Must be sent to company members 21 days before a AGM. They must be lodged with ASIC four months before the end of the financial year. www.learnnowbiz.com Corporate Governance

Directors’ Report Must be prepared by every company, except a proprietary company at the request of members (S298). Includes: Operations and results Principal activities Post balance-date events that will have an impact Future developments Compliance with environmental regulation Information for shareholders www.learnnowbiz.com Corporate Governance

Directors’ Report Continued Specific items to be included are found in S300 and S300A. They are: Directors’ details. Dividends paid or recommended. Options over unissued shares. Indemnities given and insurance premiums paid. Copy of the auditor’s independence declaration. And for listed companies: Directors’ interests in company securities Any other directorships held in the last three years Non audit services provided by the auditor Derivative proceedings under S237 Report on directors’ remuneration: S300A www.learnnowbiz.com Corporate Governance

Half-yearly Reporting Disclosing entities must produce a half-yearly report that must be audited. However, these need not be send to auditors. They should be lodged with ASIC. www.learnnowbiz.com Corporate Governance

Continuous Disclosure Arising from ASX Rules and the Corporations Act S674-677, a company must keep stock market participants informed of events related to the companies performance. www.learnnowbiz.com Corporate Governance

Remuneration Reports S300A states that directors of listed companies must prepare a reuneration report that details policy and practices for directors, secretaries and management. The report must be put to the AGM. www.learnnowbiz.com Corporate Governance