ASIC issues revised Form FS70 for AFS licensee reporting
Previously, many non-reporting entities holding Australian Financial Services (AFS) licences prepared special purpose financial statements (SPFS) for the Australian Securities and Investments Commission (ASIC). This occurred regardless of whether the entity was reporting under Chapter 7 or Chapter 2M of the Corporations Act 2001. Following the removal of SPFS for years ended 30 June 2022, AFS licensees expected to need to transition to Tier 2 (Simplified Disclosures) GPFS. However, in many cases, they must instead prepare full Tier 1 general purpose financial statements (GPFS), for example, where:
- They have ‘public accountability’ as described in AASB 1053 Application of Tiers of Australian Accounting Standards
- They are deemed to have public accountability by ASIC for the purposes of Chapter 7 reporting.
Our article from the June 2022 edition of Corporate Reporting Insights summarised the types of AFS licensees deemed to have public accountability in ASIC’s June 2022 Media Release, as well as the various transitional relief options available for 30 June 2022 reporting.
The new Form FS70 provides more guidance about the types of licensees deemed to be publicly accountable. In particular, the ‘Certification’ in section 11 cross-references to where these definitions can be found. For example, a licensee that forms part of the wholesale trustees’ sub-sector, is defined in regulation 37 of the ASIC Supervisory Cost Recovery Regulations 2017.
ASIC is expected to provide additional guidance in the upcoming weeks about various application issues associated with preparing GPFS for the first time, including transition relief options. We hope to provide an analysis of this in next month’s Corporate Reporting Insights.
Please contact our IFRS & Corporate Reporting team if you would like further information, or require assistance with any AFS licensee financial reporting matters.