Investment Management

ASIC guidance on annual financial reporting for public companies

Contact: Carter Newell Lawyers (Queensland, Australia)

Section 299(1) of the Corporations Act 2001(Cth) requires the directors of listed public companies (and listed registered managed investment schemes) to include a "review of operations" of their entity over the reporting year in the directors' report.  The directors' report is typically included in the published annual report of the entity.

There have been some questions raised by directors as to how far this reporting obligation extends, with added conjecture as to how much detail and explanation needs to be given.  With the 2013 annual reporting season coming up, the Australian Securities and Investments Commission (ASIC) has elected to offer guidance on these issues by its release of Regulatory Guide (RG) 247 titled "Effective disclosure in an operating and financial review".  This article will give you a synopsis of how ASIC believes compliance is achieved.

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