In response to business disruptions caused by COVID-19, the Australian Securities and Investments Commission (ASIC) has announced a one month extension of the reporting deadlines for companies to lodge their audited financial reports under Chapters 2M and 7 of the Corporations Act 2001. The extension applies to both listed and unlisted companies with a balance date up to and including 7 July 2020.
This means that the ASIC deadline to lodge an annual financial report for a listed company or registered scheme with a 30 June balance date will be extended from 3 months to 4 months. That is, from 30 September to 30 October 2020. The deadline for lodging half-year financial reports, directors’ reports and audit/review reports for listed entities and unlisted disclosing entities with ASIC is extended from 75 days to 75 days plus 1 month.
Where required to lodge accounts, proprietary companies with a 30 June 2020 balance date will now have until 30 November 2020, from 31 October previously, to lodge their financial statements with ASIC. Where a grandfathered proprietary company uses the extended deadline relief, it will continue to retain its grandfathered status.
The directors’ report must disclose that the company has applied the ASIC relief to report to members no later than one month after the normal reporting deadline.
A listed entity will be required to inform the market if it relies on the extended period for lodging its audited financial report. The ASX is expected to issue revised requirements for listed entities to lodge their Appendix 4D or Appendix 4E for 30 June 2020.
Notwithstanding these extensions, companies are encouraged to complete and lodge their annual financial report within the normal period, where possible. The extension for 30 June 2020 financial reports follows a similar extension for unlisted companies with balance dates between 31 December 2019 and 31 March 2020.
More information is available in ASIC MR 20-113, or please contact Jamie Dreckow or 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.