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  • 18 June 2020

Extension to lodge audited and reviewed financial statements

Following the Australian Securities and Investments Commission (ASIC) granting a one month extension for companies to lodge their half-year and annual financial reports under the Corporations Act 2001, the Australian Securities Exchange (ASX) has issued a Class Waiver which provides equivalent one month extensions to lodge audited or reviewed financial information under the ASX Listing Rules.

The ASX extensions mirror ASIC’s and applies to listed entities with a balance date up to and including 7 July 2020. 

For financial years ending 30 June 2020:

  1. An entity, other than exploration entities, is still required to give to ASX its Preliminary Final Report (Appendix 4E), including its unaudited financial statements by 31 August. The Class Waiver allows the entity to lodge its final audited financial statements with ASX by no later than 30 October 2020; and
  2. If the entity is a mining exploration entity or an oil and gas exploration entity, the Class Waiver permits it to lodge its unaudited financial statements with ASX no later than 30 September.  It is then required to lodge its audited annual report with ASX by no later than 30 October 2020.

For half-years ended 30 June 2020, the deadline to lodge audited or reviewed half-year financial reports with ASX is extended from 75 days to 106 days (ie, by 14 October 2020).  In addition:

  1. An entity, other than mining exploration entity or oil and gas exploration entity, is still required to lodge its Appendix 4D along with its unaudited or unreviewed half-year accounts within two months (ie, by 31 August 2020); and
  2. If the entity is a mining exploration entity or an oil and gas exploration entity, it is required to lodge its unaudited or unreviewed half-year accounts within 75 days after the end of the reporting period.

Where an entity relies on the ASIC relief to extend the lodgment date for its audited or reviewed half-year accounts with ASX, it must:

  1. Disclose to the market before the normal lodgement deadlines that it is applying the ASIC relief; and
  2. Immediately notify the market if it becomes aware that there will be a material difference between its unaudited or unreviewed accounts and its final audited or reviewed accounts.

Net Tangible Asset calculations

ASX’s Appendix 4D and Appendix 4E requires a listed entity to disclose its Net Tangible Asset (NTA) per security. The introduction of AASB 16 Leases has raised questions regarding the appropriate treatment of right of use lease assets in an entity’s NTA calculation.

ASX has clarified that whether a right-of-use lease asset is a tangible or intangible asset for the purpose of calculating NTA under the Listing Rules follows the characteristics of the underlying asset being leased.  Consequently, a right-of-use lease asset arising from a lease of plant or equipment is considered a tangible asset and included in the calculation of NTA. Alternatively, a right-of-use lease asset arising from a lease of intellectual property or other intangible asset within the scope of AASB 138 Intangible Assets is considered an intangible asset and excluded from the NTA calculation. Entities should note that this is ASX’s interpretation for the purposes of the ASX Listing Rules and does not necessarily extend to other financial reporting purposes.

Next steps

Details of ASX’s lodgement relief is contained in Class Waiver Extending Reporting and Lodgment DeadlinesTo discuss how these changes will affect your 30 June 2020 financial reporting obligations contact your Nexia Advisor.

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