Meteor Pty Ltd owns 100% of the share capital of Satellite Pty Ltd and Meteor Pty Ltd controls Satellite Pty Ltd.The following information is available:
$\begin{array} { | l | l | l | l | l | }
\hline & \begin{array} { l }
\text { Meteor Pty } \
\text { Ltd }
\end{array} & \begin{array} { l }
\text { Meteor Pty } \
\text { Ltd }
\end{array} & \begin{array} { l }
\text { Satellite Pty } \
\text { Ltd }
\end{array} & \begin{array} { l }
\text { Satellite Pty } \
\text { Ltd }
\end{array} \
\hline & 20 \mathrm { X } 7 & 20 \mathrm { X } 8 & 20 \mathrm { X } 7 & 20 \mathrm { X } 8 \
\hline \text { Gross operating revenue } & \$ 26 \mathrm {~m} & \$ 20 \mathrm {~m} & \$ 1 \mathrm {~m} & \$ 6 \mathrm {~m} \
\hline \text { Full-time employees at year end } & 32 & 10 & 15 & 32 \
\hline \text { Gross assets at year end } & \$ 8 \mathrm {~m} & \$ 6 \mathrm {~m} & \$ 6 \mathrm {~m} & \$ 3 \mathrm {~m} \
\hline
\end{array}$
-For the 20X7 year, Meteor Pty Ltd would have to:
Have an audit
Lodge an audit report with the ASIC
Distribute the audit report to members

Question

Meteor Pty Ltd owns 100% of the share capital of Satellite Pty Ltd and Meteor Pty Ltd controls Satellite Pty Ltd.The following information is available:
$\begin{array} { | l | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { Meteor Pty } \
\text { Ltd }
\end{array} & \begin{array} { l } 
\text { Meteor Pty } \
\text { Ltd }
\end{array} & \begin{array} { l } 
\text { Satellite Pty } \
\text { Ltd }
\end{array} & \begin{array} { l } 
\text { Satellite Pty } \
\text { Ltd }
\end{array} \
\hline & 20 \mathrm { X } 7 & 20 \mathrm { X } 8 & 20 \mathrm { X } 7 & 20 \mathrm { X } 8 \
\hline \text { Gross operating revenue } & \$ 26 \mathrm {~m} & \$ 20 \mathrm {~m} & \$ 1 \mathrm {~m} & \$ 6 \mathrm {~m} \
\hline \text { Full-time employees at year end } & 32 & 10 & 15 & 32 \
\hline \text { Gross assets at year end } & \$ 8 \mathrm {~m} & \$ 6 \mathrm {~m} & \$ 6 \mathrm {~m} & \$ 3 \mathrm {~m} \
\hline
\end{array}$
-For the 20X7 year, Meteor Pty Ltd would have to:
Have an audit
Lodge an audit report with the ASIC
Distribute the audit report to members

Quizplus · Accepted Answer

According to the information given, Meteor Pty Ltd has gross operating revenue of $26m and gross assets of $8m in the 20X7 year. Since its gross operating revenue is over $25m, it is required to have an audit of its financial statements in accordance with Australian accounting standards. Therefore, choice A is correct. Moreover, as per the Australian Corporations Act 2001, as long as the company is a "large proprietary company" (based on revenue, asset value and number of employees), it must lodge an audit report with the Australian Securities and Investments Commission (ASIC) and distribute the report to its members. Therefore, choices A and B are correct, and C and D are incorrect.

Meteor Pty Ltd Owns 100% of the Share Capital of Satellite