Chapter 13 Reports and Disclosures I: Overview

1. Chapter 13Reports and Disclosures I: Overview

2. Lecture Topics • Legislative requirements • Content of annual financial reports

3. Lecture References • Text - Chapter 13 • AASBs - 1034 - 1018 - 1004 - 1026 • Corporations Act (part 2M)

4. Key Concepts • Disclosure • Annual report • Presentation • Disclosure

5. Legislative Requirements • Corporations Act (part 2M) • Reports produced • Timing of reports • Minimum content

6. Legislative Requirements • Applies to: • Disclosing entities • Public companies • Large proprietary companies • Managed investment schemes • Some small proprietary companies

7. Legislative Requirements • Regulation of financial reporting • Reports Required • Financial statements • Director’s declaration • Auditor’s report • Director’s report • Lodgement with ASIC

8. Legislative Requirements • Classification of entities • Disclosing entity • Public company • Large proprietary company • Small proprietary company • Managed investment schemes • Reporting entity

9. Legislative Requirements • Timing of reports • Reporting lag • Length of reporting period • Reporting frequency

10. Legislative Requirements • Reporting to regulators • Lodgement with ASIC • Stock Exchange requirements • Record-keeping requirements • “True and fair”

11. Content of Annual Financial Reports • Core disclosure standards • AASBs 1034, 1018, 1040 and 1026 • scope • recognised vs disclosed • role of notes • presentation vs disclosure

12. Content of Annual Financial Reports • AASB 1034: The disclosure framework • General requirements • consistency of presentation • notes to financial statements • specific non-financial disclosures • other note disclosures • comparative information

13. Content of Annual Financial Reports • Directors’ declaration • Part of annual financial report • Financial statements and notes comply with stds • Give a ‘true and fair’ view • Entity able to pay debts • Comply with the law

14. Content of Annual Financial Reports • Other standards controlling general disclosure • AASB 1031: Materiality • separate vs aggregate disclosure • policy disclosure • assessment criteria • definition • user needs focus

15. Content of Annual Financial Reports • Other standards controlling general disclosure • AASB 1001: Accounting policies • policy choice • general disclosures • changes in accounting policy

16. Content of Annual Financial Reports • Other standards controlling general disclosure • AASB 1002: events occurring after reporting date • required disclosures • type 1 and 2 events • applying AASB 1002 and cut-off issues • setting-off prohibited

17. Other Reports • Annual directors’ report • General information • Specific information • Special rules • public companies • listed companies and schemes • registered schemes

18. Other Reports • Auditor’s report • Audit and the annual report • Form an opinion • in accordance with the Act and AASBs • true and fair view • received all necessary information • financial records properly kept • records required by the Act kept

19. Reporting Obligations ofNon-reporting Entities • Preparation of annual report (other than small proprietary companies) • financial report • directors’ report and declaration • Copies of annual report sent to members • AGM for public companies • Annual report lodged with ASIC

20. Where to get more information • Other courses • List books, articles, electronic sources