Comment
Author: Admin | 2025-04-28
Carefully monitor the threshold as that moment in time might create problems (or opportunities). Likewise, if you employ a person on a part-time basis you should be counted as their full-time equivalent. So, if you employ two part time employees with a 0.5 workload that will become one full-time employee. The consolidated gross assets test to becoming a large proprietary company The consolidated gross assets of a company means that gross assets of the head company and all of the gross assets of the subsidiaries (internal holdings are excluded). The gross assets here are relevant. So you cannot reduce the group consolidated assets by any bank debt that is connected to the asset. If you are looking at identifying the consolidated gross assets you will need to looking at the accounting standards to properly classify assets. In particular identifying the gross valued of your leased assets as determined under accounting standard AASB 16. What does it mean to be a large reporting company? If your company is a large reporting company you will be required to lodge consolidated financial reports for your corporate group and also become subject to audit by a registered company auditor. The audited accounts must be submitted to ASIC within four months of your financial year end. How to avoid becoming a large reporting company? If you do not want to lodge accounts because you are a large proprietary company will have to change your business operations. The law is relatively clear and you can only avoid the lodgement requirements by not fulfilling the tests. Practically we have seen some strategies including: Creating an employment company outside of the controlled group so that your number of employees within the group is lower. Employing contractors so that your number of employees is lower. Purchasing assets outside of the controlled group (noting the impact of the leased assets accounting standard). Structuring your business long term so that the head company is owned by a trust (this might create tax problems as you might not be able to enter into a tax consolidation). All of the above strategies have downsides and should be considered carefully and not designed purely to thwart the intention of the law. Another option is to simply lodge the accounts – the lodgement of general purpose financial reports, in some cases, does not give competitors any advantage in seeing the financial position of a company
Add Comment