The Financial Reporting Act (Australian Parent Entity Financial Statements) Exemption Notice 2011 came into force on 16 September 2011. The notice exempts directors of companies incorporated in Australia (with one or more subsidiaries) that are issuers from various provisions of the Financial Reporting Act 1993.
Subject to certain conditions, the exemption notice allows Australian issuers to register consolidated financial statements for the group and summary information on the parent entity that comply with the preparation and audit requirements of Australia. This will mean that:
- the issuer will not need to prepare, have audited, and register full separate parent entity financial statements because this is no longer required under Australian law; and
- the consolidated financial statements of the issuer, and the associated audit report, will comply with generally accepted accounting practice in Australia and Australian requirements for audit reports.