limitedcompany
Annual Statements
Annual Statements
Understanding Annual Statements
Annual statements are documents sent to companies through representatives or directly to address provided by the company. The reports reveal an evaluation of all activities undertaken in a company. The objective behind issuing annual statements is that it gives accurate information to shareholders and other concerned individuals associated with a particular company.
Australian Securities and Investments Commission (ASIC) is the body responsible for issuing annual statements to companies annually. It is their review of the company’s activities over the year and usually consists of:
- Information about the current state of your company
- An invoice showing fee for review
- The corporate key for your company
The annual statements are sent to either updated address of any agent appointed by the company or company’s official address or through online means from the five days in which details have been forwarded for review.
Annual Review Fee
The payment of this fee maintains that your Business is still registered. An invoice is sent alongside the annual statements containing different payment options and failure to make payment before the deadline attract penalty (a fine). Also, the fee varies depending on the type of the company.
During this time, one can edit one’s company’s details using what is known as a corporate key and submit a solvency resolution. Any changes made to your company’s details are communicated to ASIC by filling Form 491 online.
A Solvency Resolution
It is a resolution passed by the board of directors of a company in view that the company is capable of paying its debts ahead of the review day. The answer is given two months before the review date, usually the registration date for a company. If the directors believe the company can pay its debts ahead of the review day, then it is positive. On the other hand, it is harmful if it does not believe so.
When the resolution is negative, or none has been passed, you must lodge a notice by filling form 485.
How to Change A Review Date?
It is possible to change the date your review would arrive if your company has:
• An ultimate holding company that is common
• An officeholder
• A responsible entity
• And in other exceptional cases etc.
In essence, the reason for applying for a change must not be trivial. To use, you have to complete the form in Form 488. However, application fee applies, and all other requirements for changing of details apply.
Application is processed within ten days from when payment is made.
Will Changing My Review Date Reregulate My Annual Reviews?
At first, it may result in you receiving two annual reviews, but it is regulated back to normal. If you receive two yearly inspections, the second comes with no fee.
Who Can Apply?
• An officeholder that is, the director or the secretary
• Any responsible individual for a scheme.
What Are the Roles Of Directors in Financial Statements?
All directors are meant to act in their companies’ best interests; hence, they review statements received from ASIC and seek improvements in the next year. The Directors are often required to suggest to the board various accounting tools that are best for their companies’ current state.