Significant Global Entities (SGE) – more entities captured?
Our financial reporting content expert Carmen Ridley, explains that many more entities might be needing to prepare General Purpose Financial Statements (GPFS) which will be placed on the public record.
The deadline for SGE’s to lodge general purpose financial statements (GPFS) with the Australian Taxation Office (ATO) for the first time has just passed but already we have seen some changes for this legislation announced in the recent budget.
The SGE concept requires Australian entities (regardless of their Australian revenue) who are part of a group whose revenue exceeds AUD$1bn to prepare GPFS and lodge them with the ATO. These financial statements will be passed to Australian Securities and Investment Commission (ASIC) and placed on the public record.
The 2018 budget has revised the definition of SGEs as follows from 1 July 2018.
OLD DEFINITION NEW DEFINITION
An entity which is a member Existing definition PLUS
of a group headed by a public members of large multinational
company or a private company >>>>>> groups headed by private companies,
required to provide consolidated trusts and partnerships and members
financial statements. of groups headed by investment entities.
What Should Entities Do?
Entities should consider whether they are part of a group meeting the revised SGE definition and if so, ensure they have appropriate systems and processes in place to allow preparation of GPFS.
If you’d like a demonstration of our Financials reporting product, please contact us via firstname.lastname@example.org or phone (+61 3 9660 4680).
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