Public companies are now obligated to submit a “Consolidated Entity Disclosure Statement” (CEDS) annually, providing detailed information on all entities within the listed or unlisted company.
Following the Treasury’s announcement on 5 July 2024, and as part of the Australian Government’s commitment to tax integrity and transparency, all public companies (those open to public investment) must now include a CEDS in their annual financial reports.
Requirements for the Consolidated Entity Disclosure Statement:
Effective July 2024, every Australian public company is required to submit a Consolidated Entity Disclosure Statement as part of its annual financial report. This requirement is a result of amendments to the Corporations Act, in alignment with the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024. The amendment mandates that both listed and unlisted Australian public companies disclose information about their subsidiaries in the annual financial report.
The requirement for a CEDS applies to each financial year starting on or after 1 July 2023, with the first application being for the financial year ending 30 June 2024. The CEDS must be included in the annual financial report and should either:
- Detail each entity within the company’s consolidated group, if the accounting standards necessitate the preparation of consolidated financial statements; or
- Provide a statement indicating that consolidated financial statements are not required under the accounting standards.
Ensuring Compliance with CEDS Obligations:
For more information on the CEDS requirements, please refer to the Australian Securities & Investments Commission (ASIC) guidelines.
Should you have any concerns regarding the implications of CEDS for your public company, please contact us. We are available to assist you in understanding the new requirements and ensuring the necessary information is included in your next annual financial report.
