ASIC Class Order 10/654
On 29 July 2010 the Australian Securities and Investments Commission (“ASIC”) issued Class Order CO 10/654 “Inclusion of parent entity financial statements in financial reports”.
With the recent amendments made to Chapter 2M of the Corporations Act, the revised legislation prevented entities presenting consolidated financial statements from including parent entity financial statements in their financial report.
The class order overcomes this unintended consequence allowing entities to include parent and consolidated entity financial statements in their financial report.
Some entities may therefore elect not to take advantage of the financial reporting reform that allows entities to omit parent entity financial statements.
This may be the case where, for example:-

• it avoids the burden of changing reporting formats for years ending 30 June 2010 late in the reporting process
• management believe the parent entity financial statement continue to provide useful information to users of the financial report
• avoids certain conflicts between legislative provisions, for example, AFS licensees who are required by Chapter 7 of the Corporations Act to present both parent and consolidated entity financial statements as part of their financial report.
  
  
  Contact

  Rob Mackay
  T +61 3 8635 1800
  rmackay@moorestephens.com.au
  
  www.moorestephens.com.au