April 2025
Updated to reflect minor clarifications on the Consolidated Disclosure Entity Statement (CEDS) that are applicable for public companies with financial years beginning on or after 1 July 2024 (i.e. financial years ending on or after 30 June 2025).
Example Public Company Limited is designed to assist with the preparation of annual financial statements in accordance with Australian Accounting Standards. Based on current disclosure and presentation requirements for financial years ending 31 December 2024 and 30 June 2025, Example Public illustrates one possible financial report format for a fictitious for-profit multinational corporation involved in general business which is not a first-time adopter of Australian Accounting Standards (AASBs).
Explore our comprehensive financial statement example guide for relevant recent disclosure and presentation requirements for your company’s financial statements when reporting in accordance with Australian Accounting Standards and other required Australian financial statement regulations.
Driving clarity in your entity's financial reporting
Maintaining stakeholders’ confidence and trust is high on the agenda for all companies, with clarity of financial reporting playing a key role.
The current economic conditions are marked by ongoing impacts of fluctuating interest rates and inflation, increased market volatility, and heightened geopolitical risk. These uncertainties bring numerous issues and risks for companies, including shifts in consumer demand, disrupted supply chains, staff shortages and increased operational costs. These factors contribute to an ever-changing business environment. Increasingly, the effects of climate change are shaping our landscape, prompting stakeholders to focus on how entities are reflecting the risks and opportunities they are facing and the strategic decisions being made in transitioning to a low-carbon economy. In this complex environment, effective and clear communication continues to be critical.
In the Operating and Financial Review (OFR), stakeholders expect entities to provide a holistic view of their business, including their performance and future strategic plans. ASIC regularly calls for the OFR to complement the financial report and tell the story of how the company’s businesses are performing. It should provide explanations for underlying drivers of results, financial position, material business risks, and their impact on strategies and future prospects. Importantly, forward-looking information should be based on reasonable assumptions, and the market should be updated through continuous disclosure if circumstances change.
With the finalisation of AASB S2 Climate-related Disclosures, we recommend companies use this as a basis for any voluntary reporting of climate-related risks and opportunities in any reporting periods leading up to mandatory application by the company. ASIC continues to highlight its expectations on sustainability-related disclosures and greenwashing, and the publishing of sustainability-related statements that are well-founded and clearly backed by strategic plans and investments. Notably ASIC is taking regulatory actions as a result of its greenwashing surveillance activities.
Our model financial statements and other resources provide guidance and tools to assist you with the preparation of your financial statements.
Example Public Company Limited: illustrative disclosures 2024-25
Sample financial statements to assist with your annual financial report preparation.
FIRST TIME USERS OF EXAMPLE PUBLIC Given Australia’s close alignment to IFRS® Accounting Standards, a substantial portion of Example Public Company Limited has been based on the illustrative disclosures publication prepared by our international colleagues based on ‘pure’ IFRS Accounting Standards. However, to illustrate additional financial reporting requirements in Australia, including specific disclosure and alternative presentation methods that are commonly used in Australia, a separate section has been included just before the main financial statements. A clear cross-reference to the Australian section is included on affected international pages. |
RECURRING USERS OF EXAMPLE PUBLIC KPMG's guide includes a 'what’s new' page, which contains a summary of all new or revised accounting standards and regulatory changes that have been reflected in Example Public Company Limited since the previous edition of this guide and references to other resources in the guide that you might find useful to your preparation of financial statements for the current period.
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Frequently asked questions (FAQs)
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How should significant judgements and estimates be disclosed in the financial statements? Significant judgements and estimates should be clearly disclosed in the notes to the financial statements, providing detailed explanations of the assumptions and methodologies used. Companies should describe the nature of the judgements and estimates, their potential impact on the financial statements, and any changes in assumptions or methodologies from prior periods.
This disclosure helps stakeholders understand the areas of financial reporting that are subject to significant uncertainty and the potential effects on the company's financial position and performance. Examples include revenue recognition, impairment tests, and the fair value of financial instruments.
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How should climate-related risks and opportunities be incorporated into financial statements? Investors and regulators need to understand how climate-related risks and opportunities have affected and will affect a company’s financial position and performance. They expect a company’s financial statements and sustainability reporting to reflect the risks and opportunities it is facing and the strategic decisions it has made in transitioning to a low-carbon economy. They also expect the different elements of a company’s reporting to provide a coherent, connected and integrated picture.
Visit our Sustainability and Climate Change | Financial reporting centre to help identify and address climate change impacts on your financial statements.
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How will Base Erosion and Profit Shifting (BEPS) Pillar 2 affect financial statement disclosures? BEPS Pillar 2 introduces a global minimum tax of 15 percent for large multinational groups with global revenue exceeding EUR 750 million. It aims to ensure that these groups pay a minimum level of tax on their income in each jurisdiction where they operate.
Companies are required to disclose additional information related to their Pillar 2 tax positions and potential impacts on their financial statements i.e. current tax expense. Companies may also need to provide qualitative disclosures to explain the impact of these new tax regulations.
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How should non-IFRS financial information be presented? Disclosure of non-IFRS financial information should have regard to the requirements of ASIC Regulatory Guide 230 Disclosing non-IFRS financial information. Non-IFRS financial information should be clearly labelled and distinguished from IFRS financial measures, ensuring that it is not misleading. Companies should provide a reconciliation between non-IFRS and IFRS measures, explaining the reasons for using non-IFRS information and how it provides useful insights for stakeholders. Additionally, any adjustments or exclusions should be consistently applied and disclosed, providing transparency and comparability.
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What is a Consolidated Entity Disclosure Statement (CEDS) and who is required to prepare a CEDS? CEDS is a mandatory disclosure for Australian public companies (both listed and unlisted) reporting under Chapter 2M of the Corporations Act 2001 for financial years commencing on or after 1 July 2023, i.e., annual financial reports for 30 June 2024 and onwards. Public companies are required to disclose certain tax-related information for all subsidiaries in the CEDS, including names, legal structure, locations of incorporation or formation and tax residency status.
Read our Reporting Update 25RU-02 | Consolidated Entity Disclosure Statement (CEDS) for further information on the requirements.
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What changes have been made to CEDS for public companies with a financial year ending 30 June 2025 and onwards? - Where an Australian tax resident is also a tax resident in another jurisdiction, now required to disclose ALL foreign jurisdiction(s) tax residencies.
- ‘Australian resident’ is now defined for Partnership and Trust for the purpose of CEDS.