Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 05/639]

Authoritative Version
CO 05/639 Orders/ASIC Class Orders as made
Class Order [CO 05/639] ensures that non-reporting entities can take advantage of concessions or other modifications of the recognition and measurement requirements of accounting standards that are available to reporting entities, such as: (a) Concessions available under accounting standard AASB 1 "First-time Adoption of Australian Equivalents to International Financial Reporting Standards"; and (b) Transitional provisions or other concessions available under a non-mandatory accounting standard.
Administered by: Treasury
Registered 28 Jul 2005
Tabling HistoryDate
Tabled HR09-Aug-2005
Tabled Senate09-Aug-2005
Date of repeal 01 Oct 2015
Repealed by ASIC Corporations (Amendment and Repeal) Instrument 2015/843

Australian Securities and Investments Commission
Corporations Act 2001 — Subsection 341(1) — Order

 

Enabling provision

 

1.         The Australian Securities and Investments Commission (ASIC) makes this order under subsection 341(1) of the Corporations Act 2001 (the Act).

 

Title

 

2.         This order is ASIC Class Order [CO 05/639].

 

Commencement

 

3.         This instrument commences on the date it is registered under the Legislative Instruments Act 2003.

 

Note:      An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register).  The FRLI may be accessed at http://www.frli.gov.au/.

 

Relief for entities that are not reporting entities

 

4.         A company (the non-reporting entity) or registered scheme (the non-reporting entity) that is not a reporting entity does not have to comply with subsection 292(1), subsection 296(1) and section 297 of the Act in relation to a financial report (the relevant report) that it must prepare for a financial year but only to the extent set out in paragraph 5 and only where the condition in paragraph 6 is met.

 

5.         The non-reporting entity need not comply with a recognition requirement or measurement requirement to the extent to which that requirement would not have applied to an eligible reporting entity.

 

Condition

 

6.         The non-reporting entity must take all reasonable steps to ensure that the relevant report complies with all recognition requirements and measurement requirements as if it were an eligible reporting entity.

 

Interpretation

 

In this order:

 

Australian equivalents to IFRSs has the same meaning as in accounting standard AASB 1 “First-time Adoption of Australian Equivalents to International Financial Reporting Standards”.

 

eligible reporting entity means:

 

(a)                   in relation to the first financial year commencing on or after 1 January 2005 – a reporting entity which first adopts Australian equivalents to IFRS for that financial year and which includes in its financial report for that year an explicit and unreserved statement that the report complies with Australian equivalents to IFRSs; and

 

(b)       in relation to subsequent financial years – a reporting entity.

 

Note:      Accounting standard AASB 1 “First-time Adoption of Australian Equivalents to International Financial Reporting Standards” is expressed to apply “when an entity first adopts Australian equivalents to IFRS”: see paragraph 4.  By paragraph 3 of that standard “[a]n entity’s first Australian-equivalents-to-IFRSs financial report is the first annual financial report in which the entity adopts Australian equivalents to IFRSs, by an explicit and unreserved statement in that financial report of compliance with Australian equivalents to IFRSs”.

 

measurement requirement means a requirement in an accounting standard that is relevant to working out the cost or other value to be attributed to an asset, liability, revenue, expense or other item that is covered by a recognition requirement.

 

recognition requirement means a requirement in an accounting standard that an asset, liability, revenue, expense or other item is to be expressly reported on, or incorporated in amounts expressly reported on, in a financial statement to which the standard relates.

 

reporting entity means a reporting entity as defined in Appendix A of accounting standard AASB 3 “Business Combinations”.

 

 

Dated this 26th day of July 2005

 

 

 

 

Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission