We would like to clarify some things regarding our latest newsletter regarding the Australian Accounting Standards (AAS)
It is important to note that even if a constituting document specifically requires the financial statements to be drawn in accordance with Australian Accounting Standards, there is no need to change that constituting document in order to continue to be entitled to produce special purpose financial statements.
If, in the future:-
If, in the future:-
- a constituting document contains the specific requirement to prepare accounts in accordance with Australian Accounting Standards; and
- when the first change is made to that constituting document,
- if the reference to the AAS is not altered, the entity will be required to produce general purpose financial statements as from that financial year; but
- if the reference to the AAS is altered, the entity can continue to produce special purpose financial statements forever, subject to any changes imposed on entities in the future.
So, the big message here is:-
- there is no need to start wandering through constitutions and trust deeds now; but
- if a change is being made to a constitution or trust deed, the person undertaking that work should review the provisions dealing with financial reports and react according to needs.
Constitutions, trust deeds, and other constituting documents prepared by Castle do not contain the specific requirement to prepare accounts in accordance with Australian Accounting Standards.
Furthermore, when we receive orders to change these documents, we will check to see if this specific requirement is present and inform you if it is present, so you can decide whether you want to remove or retain the requirement.
I hope that makes things clearer. If you have any questions about this subject matter, please feel free to speak with Jenny Hamley or Steven Hamley on (03) 9898 6666.
From Castle Corporate Pty Ltd and Castle Legal Pty Ltd
Partnering with you to get it right.