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Before taking up the extension consider your company’s position and obligations, cautions the regulator.
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ASIC extends deadline for unlisted entity financial reports
26 July 2022
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9 minute read
ASIC has extended the deadlines for lodging financial reports for unlisted entities by one month for balance dates from 24 June 2022 to 7 July 2022 inclusive.
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The commission said the extension would help ease pressure on resources for the financial reporting and audits of smaller entities, and provided additional time for the completion of the processes in light of the difficulties brought about by COVID.
ASIC encouraged directors to consider the information needs of shareholders and other users of financial reports as well as meeting borrowing covenants or other obligations when deciding whether to take up the extension or follow statutory deadlines.
ASIC said that it had taken this step after it engaged with the industry and learnt that companies and audit firms had reduced staff numbers due to travel restrictions and increased staff resignations.
The recent rise in COVID cases and the expectation for those numbers to rapidly grow were also taken into account by ASIC with a higher volume of staff absences predicted.
ASIC also said it believed extra time might have been needed due to difficult judgements on asset values, provisions and disclosures because of changed economic conditions.
ASIC said directors of some unlisted companies might be asked by their auditors to facilitate the spreading of deadlines for lodging audited financial reports.
The one-month extension deadline for full-year financial reports meant it was extended from three to four months for unlisted registered schemes and unlisted disclosing identities, while for all other unlisted entities it was extended from four to five months.
For half-year financial reports the deadline was extended from 75 days to 75 days plus one month for unlisted disclosing entities.
For unlisted AFS licensees that are bodies corporate and are also disclosing entities the deadline was extended from three to four months while for unlisted AFS licensees that are bodies corporate and not disclosing entities it was extended from four to five months.
AFS licensees that are not body corporate have had their deadline extended from two to three months.
ASIC said that it would consider relief for other entities and balance dates on a case-by-case basis but at present there was no indication that further extensions of time would be necessary for those with balance dates after 7 July 2022.
ASIC also said that the relief would not apply to registered foreign companies.
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