Financial reporting for licensees

Reporting requirements for consolidated companies

Where the company operates within a group of companies, it may rely on the consolidated accounts of the group if:

  • the company is the parent entity of the group, or
  • the company is a subsidiary within the group, and is party to a Deed of Cross Guarantee (ASIC Class Order 98/1418 or similar).

Maximum Revenue (MR) over $12 million

Where the applicant is a company operating within a group of companies and is party to a Deed of Cross Guarantee (ASIC Class Order 98/1418) the report is to be based on either:

  • the consolidated group of companies
  • the "closed group" of companies – being only those companies subject to the Deed of Cross Guarantee, or
  • the company in its own right as a stand-alone company.

The company must provide evidence that the Class Order was in place for the period of review on which the report is based and continues to be in place for the forthcoming financial year.

If the company is subject to ASIC’s audit requirements, provide an MFR Report (PDF) signed by a Registered Company Auditor based on the last audited accounts.  A copy of the last audited accounts must also be provided.

If the last audited accounts fail to meet the Minimum Financial Requirements (MFR) Policy (PDF) or the parent company or group has not been audited previously, but will be subject to ASIC audit requirements within the following 12 months, the MFR Report may be prepared for a period end date less than four months old.  The MFR Report and signed financial statements do not need to be prepared by a Registered Company Auditor, as the holder of a public practicing certificate from an accounting body can also prepare the MFR Report.

Additional reporting requirements for licensees who provide audit or review reports to ASIC or ASX

From 9 October 2015, if you or any company within your group of companies is required to provide an auditor's report or review report to ASIC or ASX, you now have an additional reporting requirement. You must provide us with a copy of any audit or review report you provide to the Australian Securities and Investment Commission (ASIC) or the Australian Securities Exchange (ASX) within 30 calendar days of the report being signed and/or submitted to ASIC or ASX.

Failure to provide these documents within this timeframe may result in our determining you no longer meet the Minimum Financial Requirements.

If you have already provided these documents to ASIC or ASX for the 2014-15 financial year, you must provide the copy to us on or before 1 December 2015.