Financial reports

Learn more about 

• corporation sizes 
• annual reporting.

Consolidated entities

A corporation that controls another entity is required to prepare consolidated financial statements.

Your corporation has control over another entity when it:

• has power over it
• can influence its returns
• holds the majority of voting rights (like appointing directors).

Consolidated financial statements combine the financial results into one set of financial statements from a group of:

• the main corporation (the parent) 
• the entities it controls (subsidiaries).

In simple cases, the parent is the one with the majority of voting rights.

Timing for financial reports

Lodge your financial report between 1 July and 31 December each year unless you have an exemption or extension.

Contents of financial reports

A financial report includes:

• financial statements
• notes to the financial statements 
• a directors’ declaration.

General purpose financial reports 

A reporting entity under the accounting standards makes general purpose financial statements. 

These include: 

• a statement of financial position 
• a statement of comprehensive income 
• a statement of changes in equity showing either all changes in equity or a statement of cash flows
• changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders
• notes to the financial statements (prepared in line with accounting standards). 

You may also need to apply other accounting standards.

The report must also include a copy of the resolution of a director’s declaration with:

• a statement that the corporation will be able to pay its debts when they’re due 
• a statement that the financial statements and notes comply with the CATSI Regulations, accounting standards and are a true and fair view of the financial position and performance of the corporation 
• the date the resolution was made 
• a signature of a director.

Publicly-funded corporations

Your corporation may be able to lodge a financial report based on reports it gives to public funding bodies if it’s:

• small – with a CGOI between $100,000.00 and $5 million
• medium with a CGOI of less than $5 million.

It must also have:

• government funding (Commonwealth, state or local) making up at least 90% of the corporation’s CGOI during the financial year 
• lodging an annual report as a condition of its funding
• accounting standards that do not require the corporation to provide consolidated financial statements.

Publicly-funded corporation reports 

Corporations with public funding lodge financial statements in line with the funding bodies’ requirements.

These types of corporations’ financial reports also include:

• a copy of the reports given to the funding bodies
• a copy of the relevant auditor’s report
• an income and expenditure statement and a balance sheet for any income, expenditure, assets and liabilities that weren’t in the funding reports
• a copy of the resolution of the directors’ declaration. 

The resolution can be passed at a directors’ meeting or by circulation. It must include: 

• a statement that the corporation will be able to pay its debts when they are due 
• the date the resolution was made 
• a signature of a director.