Chapter 7: Accounting statutory obligations. Learning objectives: To learn the compliance requirements of the Corporations Act 2001, to learn the compliance requirements of applicable accounting standards within australia, to understand audit requirements and other statutory obligations. | Accounting statutory obligations Learning objectives To learn the compliance requirements of the Corporations Act 2001. To learn the compliance requirements of applicable accounting standards within Australia. To understand audit requirements and other statutory obligations. key terms accounting standards audit committees auditing auditing standards company policy corporate governance Corporations Act disclosing entity independent auditor industry codes of practice internal auditor Listing Rules reporting entity securities Trade Practices Act The Corporations Act Provides for limited liability companies and their listing with ASX Categorises public and proprietary companies Distinguishes between small and large proprietary companies Provides financial reporting and audit requirements Administered by ASIC Financial reporting and audit requirements Proper financial records are maintained A financial report to be prepared at the end of each financial year Financial statements to give a ‘true and fair view’ of company’s financial position The financial report must comply with accounting standards Financial reports Must contain: Statement of financial performance Statement of financial position Statement of cash flows Notes to the accounts Directors’ declaration Audit report Small and large proprietary companies A small proprietary company must satisfy two of the following criteria: gross operating revenue for the year is less than $10 million value of gross assets at year end is less than $5 million fewer than 50 employees at year end A company that does not satisfy two of these criteria is a large proprietary company Australian Stock Exchange - ASX The primary role of a stock exchange is to provide and maintain a market for trading securities that is: fair and efficient well-informed internationally competitive will secure investor confidence ASX Listing Rules ASX is required by the Corporations Act to make Listing Rules: listed companies must comply with these . | Accounting statutory obligations Learning objectives To learn the compliance requirements of the Corporations Act 2001. To learn the compliance requirements of applicable accounting standards within Australia. To understand audit requirements and other statutory obligations. key terms accounting standards audit committees auditing auditing standards company policy corporate governance Corporations Act disclosing entity independent auditor industry codes of practice internal auditor Listing Rules reporting entity securities Trade Practices Act The Corporations Act Provides for limited liability companies and their listing with ASX Categorises public and proprietary companies Distinguishes between small and large proprietary companies Provides financial reporting and audit requirements Administered by ASIC Financial reporting and audit requirements Proper financial records are maintained A financial report to be prepared at the end of each financial year Financial statements to give
