Corner stores and charities would be spared from having to write a detailed annual report under a federal government proposal.
Under existing laws, companies big and small have to prepare an audited financial report.
The federal government is proposing to replace that with a three-tiered system, designed to ease reporting requirements for non-profit groups and firms with an annual turnover of less than $250,000.
Smaller firms would be spared from having to prepare a financial
report if they are unable to claim gifts as tax deductions.
Companies with
gift recipient status could choose to have their annual report reviewed rather
than audited.
They could also prepare a streamlined director’s report instead of a full director’s report.
Firms with an annual revenue of $1 million or more would continue to prepared audited annual reports.
The government also
wants to let companies change their year-end dates so auditors aren’t overworked
during peak times.
The reforms are being flagged as part of the Corporations
Amendment (Corporate Reporting Reform) Bill 2010.
Submissions can be sent until February 3, 2010.
AAP
