Reporting Update 23RU-11

In 2022 ASIC announced its requirements for Australian Financial Services (AFS) licensees to complete general purpose financial statements – subject to some transitional requirements. 

So how does this impact 2023 financial reporting?

Key features of AFS licensee financial reporting

In June 2022 ASIC announced the regulator's requirements for Australian Financial Services (AFS) licensees in implementing the new Australian financial reporting framework.

The announcement required all AFS licensees to complete a form of general purpose financial statements (GPFS), that is they can no longer prepare of special purpose financial statements (SPFS). There was limited transition relief for financial years commencing before 24 June 2022, for example years ended 30 June 2022.

In respect of 30 June 2023 financial years, all AFS licensees must now prepare GPFS. The transitional relief may impact the disclosures made in the 2022 comparative information disclosed in the 2023 financial statements:

Type of AFS licensee Types of financial statements
30 June 2022 30 June 2023 Change
Publicly accountable GPFS-Tier 1 GPFS-Tier 1
Large or sophisticated GPFS-Choice1 GPFS-Tier 1 Yes4
Other – Report under Ch 2M GPFS-Choice2 GPFS-Choice2
Other – Not report under Ch 2M GPFS-Choice3 GPFS-Choice3 Yes4
  1. If meet ASIC conditions licensee had a transitional relief choice between GPFS-Tier 1 or GPSFS-Tier 2 (2022 financial year only)
  2. Licensee can elect to prepare either GPFS-Tier 1 or GPSFS-Tier 2
  3. If meet ASIC conditions licensee had a transitional relief choice between SPFS or GPFS (2022 financial year only)
  4. ASIC transitional relief – refer to discussion in the Reporting Update PDF

ASIC Form FS 70 (FS 70) is the instrument which gives legal effect of the changes announced by ASIC. In addition, ASIC has issued some frequently asked questions which support FS 70. At the date of publishing this Reporting Update FS 70 has not been updated since September 2022.

KPMG comment

AFS licensees that hold client monies or assets will now need to ensure they prepare GPFS-Tier 1. As will those licensees classified as having a ‘greater market impact’ – that is, those on the large or sophisticated list. Other licensees can no longer prepare SFPS. This is consistent with the requirements of the Australian financial reporting framework.

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