In response to business disruptions caused by COVID-19, the Australian Securities and Investments Commission (ASIC) has announced a one month extension of the reporting deadlines for companies to lodge their audited financial reports under Chapters 2M and 7 of the Corporations Act 2001.
The extension applies to both listed and unlisted companies with a balance date up to and including 7 January 2021. The 7 January 2021 date accommodates entities that use a provision in the Corporations Act that allows their financial year to be changed by plus or minus seven days each year. The relief mirrors the previous extensions granted to companies in respect of their 30 June 2020 balance dates.
This means that the deadlines for reporting to ASIC:
- for listed entities – 31/12/2020 full year accounts are due within 4 months (now 30 April 2021) instead of 3 months;
- for listed entities – 31/12/20 interim financial reports are due within 75 days plus 1 month (now 16 April 2021);
- for proprietary companies - 31/12/2020 full year accounts are due within 5 months (now 31 May 2021) instead of 4 months;
- for AFSLs (unlisted corporates – disclosing entities) - 31/12/2020 full year accounts are due within 4 months (30 April 2021) instead of 3 months;
- for AFSLs (unlisted corporates – non-disclosing entities) - 31/12/2020 full year accounts are due within 5 months (now 31 May 2021) instead of 4 months.
Where a grandfathered proprietary company uses the extended deadline relief, it will continue to retain its grandfathered status.
The directors’ report must disclose that the company has applied the ASIC relief to report to members no later than one month after the normal reporting deadline.
ASIC’s relief is automatic and entities do not need to apply to ASIC in order to take advantage of the reporting extensions.
ASIC has also extended its ‘no action’ position where public companies do not hold their Annual General Meetings within five months after the end financial years that end from 31 December 2019 to 7 January 2021, but do so up to seven months after year end.
Notwithstanding these extensions, ASIC encourages companies to complete and lodge their annual financial report within the normal period, where possible. More information is available in ASIC’s Media Release 20-276MR.
The ASX has indicated that it intends to issue a Listing Rule waiver to mirror the above ASIC lodgment extensions. We expect that this relief will be similar to that issued by the ASX in respect of entities lodging their Appendix 4D or Appendix 4E for 30 June 2020. A listed entity will be required to inform the market before its normal reporting deadline if it is relying on the extended period for lodging its audited financial report. The ASX waiver is expected to be issued soon.
