Does your proprietary company need to lodge financial report with ASIC?

The financial reporting requirements of proprietary are based on the “small” and “large” criteria.

What is a “large” proprietary company?

A proprietary company is defined as large for a financial year if it satisfies at least two of the following three conditions:

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.

Generally, large proprietary companies must prepare and lodge an audited financial report and a directors’ report for each financial year. The accounts must be audited unless ASIC grants relief.

What is a “small” proprietary company?

A proprietary company is defined as small for a financial year if it satisfies at least two of the following three conditions:

1. The consolidated revenue for the financial year of the company and any entities it controls is less than $25 million
2. The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is less than $12.5 million, and
3. The company and any entities it controls have fewer than 50 employees at the end of the financial year.

Generally, for a “small proprietary” company, which is not controlled by a foreign company, there is no requirement to prepare or lodge a financial report unless requested to do so by shareholders or ASIC.