New consolidated entity disclosure statement
Legislative changes introduce a new statement in public company financial reports from 30 June 2024
As part of its broader reforms in relation to multinational tax, the Federal Government has made legislative changes to the Corporations Act 2001 to require all public companies (listed and unlisted) reporting under Chapter 2M of the Act to include a new “consolidated entity disclosure statement” in financial reports. The changes are effective for annual reporting periods beginning on or after 1 July 2023 and so will apply for the first time at 30 June 2024.
The new statement will include details of all consolidated entities as at the end of the financial year, including names, ownership interests, place of incorporation and tax residency. However, where consolidated financial statements are not required to be prepared, the statement only requires a statement to that effect (i.e. no detail of subsidiaries would be provided).
With a short timeframe to initial compliance, public companies should immediately put governance, resources and systems in place to collate and support information disclosed. In addition, there are interpretational issues that need to be considered.
Note: This publication was originally issued in March 2024 and was updated in July 2024 for recent developments.
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