Extension to lodge audited and reviewed financial statements
Following the Australian Securities and Investments Commission (ASIC) granting a one month extension for companies to lodge their half-year and annual financial reports under the Corporations Act 2001, the Australian Securities Exchange (ASX) has issued a Class Waiver which provides equivalent one month extensions to lodge audited or reviewed financial information under the ASX Listing Rules.
The ASX extensions mirror ASIC’s and applies to listed entities with a balance date up to and including 7 July 2020.
For financial years ending 30 June 2020:
For half-years ended 30 June 2020, the deadline to lodge audited or reviewed half-year financial reports with ASX is extended from 75 days to 106 days (ie, by 14 October 2020). In addition:
Where an entity relies on the ASIC relief to extend the lodgment date for its audited or reviewed half-year accounts with ASX, it must:
ASX’s Appendix 4D and Appendix 4E requires a listed entity to disclose its Net Tangible Asset (NTA) per security. The introduction of AASB 16 Leases has raised questions regarding the appropriate treatment of right of use lease assets in an entity’s NTA calculation.
ASX has clarified that whether a right-of-use lease asset is a tangible or intangible asset for the purpose of calculating NTA under the Listing Rules follows the characteristics of the underlying asset being leased. Consequently, a right-of-use lease asset arising from a lease of plant or equipment is considered a tangible asset and included in the calculation of NTA. Alternatively, a right-of-use lease asset arising from a lease of intellectual property or other intangible asset within the scope of AASB 138 Intangible Assets is considered an intangible asset and excluded from the NTA calculation. Entities should note that this is ASX’s interpretation for the purposes of the ASX Listing Rules and does not necessarily extend to other financial reporting purposes.
Details of ASX’s lodgement relief is contained in Class Waiver Extending Reporting and Lodgment Deadlines. To discuss how these changes will affect your 30 June 2020 financial reporting obligations contact your Nexia Edwards Marshall Advisor.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.