close
Share with your friends

20RU-019 COVID-19 financial reporting deadlines

20RU-019 COVID-19 financial reporting deadlines

ASIC extended the deadline for both listed and unlisted entities to lodge financial reports under the Corporations Act 2001 by one month for balance dates up to and including 7 July 2020. The ASX has responded to the ASIC relief but imposed a number of additional conditions. This Reporting Update is an omnibus of all the ASIC and ASX announcements over the last 5 months.

1000

Also on home.kpmg

In summary

In mid-May 2020 ASIC extended the deadline for both listed and unlisted entities to lodge financial reports under the Corporations Act 2001 (Corps Act) by one month for balance dates up to and including 7 July 2020.

On 3 June 2020 the ASX granted an equivalent class waiver to listed entities to enable them to take advantage of the deadline extension for lodging full year and half-year financial reports provided by ASIC for balance dates up to and including 7 July 2020. The waiver imposes some additional conditions to ASIC’s relief.

The waiver was updated on 16 June 2020 to extend the relief to other documents that accompany the ‘annual accounts’ – for example, the Directors’ report.

The ASIC relief does not apply to registered foreign companies.

Both ASIC and the ASX are still encouraging entities to lodge within the normal statutory deadlines, having regard to the information needs of shareholders, creditors and other users of their financial reports.

ASIC has advised that it will continue to monitor market conditions and COVID-19 and may issue updated guidance in the future.

The following table is the current state of play:

Entities reporting to ASIC Balance dates up to 7 July 2020 Balance dates after 7 July 2020
Listed entities1 1 month extension2
(i.e. 3 months to 4 months)
No announcement – ongoing monitoring by ASIC
Unlisted disclosing entities and unlisted registered schemes 1 month extension3
(i.e. 3 months to 4 months)
No announcement – ongoing monitoring by ASIC
Other unlisted entities 1 month extension3
(i.e. 4 months to 5 months)
No announcement – ongoing monitoring by ASIC
  1. ASX has set out some additional conditions, to the ASIC relief, that must be satisfied.
  2. Entities with balance dates before 21 February 2020 will not receive the one months extension.
  3. Entities with balance dates before 31 December 2019 will not receive the one month extension.

In all cases entitites may apply for individual relief, with ASIC, for extending a financial reporting deadline.

KPMG comment

“Before taking the one month extension offered entities should consider other contractual obligations which may require financial statements to be made available. For example, borrowing covenants which require the financial report by a prescribed deadline.” 

Michael Voogt
Director, Department of Professional Practice

 

Reporting periods ending after 7 July 2020

ASIC continues to assess the impact on financial reporting for balance dates after 7 July 2020. ASIC is also carefully monitoring how market conditions and COVID-19 developments are affecting financial reporting obligations for entities. See 20RU-021 COVID-19 financial reporting deadlines – December 2020 for details of further deadline extensions.

Further detail can be found in the PDF version of the Reporting Update including further discussion on:

  • the impact on financial reporting deadlines for both listed and unlisted entities, including the additional conditions imposed by the ASX
  • what happens if an extension greater than one month is needed
  • consequential amendments to other ASIC Instruments resulting from the deadline extension
  • guidance on a timing extension for public company requirements to hold annual general meetings (AGMs)
  • guidance on the ability for public companies to hold hybrid or virtual AGMs.

©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.

Liability limited by a scheme approved under Professional Standards Legislation.


For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal