Proposed changes to corporate reporting requirements are designed to make the administration of not for profit organisations easier and more efficient. Under the existing laws, companies limited by guarantee are required to prepare audited financial reports and extensive directors’ reports regardless of their size.
This will change if the Corporations amendment (corporate Reporting Reform) Bill 2010 becomes law. The most significant changes include:
• Reduced regulatory burden on companies limited by guarantee under a three-tiered reporting framework allowing smaller companies to be able to elect to have financial reports reviewed rather than audited.
• Streamlined parent-entity reporting.
• Companies being more easily able to change their year-end date to minimise the burden on companies and their auditors during peak reporting periods.
• Streamlined directors’ reports for smaller companies
The government claims this bill will support already incorporated not for profits and encourage social enterprise by reducing regulatory barriers to setup and operation.
