Financial reports
A financial report details a corporation's financial performance and position. It must be prepared in line with the Australian Accounting Standards.
High-quality financial reports are key to giving confidence to stakeholders. A high-quality report can support investment decisions and build trust and transparency.
Corporations that need to prepare a financial report
Your corporation must prepare and lodge a financial report each year if its:
- size is small and it has a consolidated gross operating income (CGOI) of $100,000 or more
- size is medium
- size is large.
Small corporations with a CGOI less than $100,000 don’t have to do a financial report. This makes it easier for corporations with little or no income.
Consolidated gross operating income is the total value of the money made by the corporation and any entities it controls.
Learn more about
Consolidated entities
A corporation that controls another entity is required to prepare consolidated financial statements.
Your corporation has control over another entity when it:
- has power over it
- can influence its returns
- holds the majority of voting rights (like appointing directors).
Consolidated financial statements combine the financial results into one set of financial statements from a group of:
- the main corporation (the parent)
- the entities it controls (subsidiaries).
In simple cases, the parent is the one with the majority of voting rights.
Timing for financial reports
Lodge your financial report between 1 July and 31 December each year unless you have an exemption or extension.
Contents of financial reports
A financial report includes:
- financial statements
- notes to the financial statements
- a directors’ declaration.
General purpose financial reports
A reporting entity under the accounting standards makes general purpose financial statements.
These include:
- a statement of financial position
- a statement of comprehensive income
- a statement of changes in equity showing either all changes in equity or a statement of cash flows
- changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders
- notes to the financial statements (prepared in line with accounting standards).
You may also need to apply other accounting standards.
The report must also include a copy of the resolution of a director’s declaration with:
- a statement that the corporation will be able to pay its debts when they’re due
- a statement that the financial statements and notes comply with the CATSI Regulations, accounting standards and are a true and fair view of the financial position and performance of the corporation
- the date the resolution was made
- a signature of a director.
You can use our template directors' declaration or draft your own.
Publicly-funded corporations
Corporations that receive more than 90% of their funding from funding bodies may be eligible for alternative reporting. This means that these corporations can provide the Registrar with the reports they give to their funding bodies along with some other information instead of a financial report and an audit report.
Find out more about alternative reporting.
Learn more
See our corporation reporting guide for auditors, accountants and bookkeepers or learn more about accounting standards on the Australian Accounting Standards Board website.
