I$\quad$ Companies with enhanced disclosure securities on offer
II$\quad$ Public companies
III$\quad$ Wholly Australian-owned large proprietary companies
IV$\quad$ Wholly Australian-owned small proprietary companies
-As a general rule, under the Corporations Act, which of the following types of companies must prepare a financial report for a financial year?

Question

Quizplus · Accepted Answer

According to the Corporations Act, both public companies and companies with enhanced disclosure securities on offer are required to prepare a financial report for a financial year. Additionally, large proprietary companies (whether wholly Australian-owned or not) are also required to prepare a financial report, whereas small proprietary companies are exempt unless directed otherwise by ASIC or at least five percent of shareholders request it. Therefore, options II and III are required to prepare a financial report, and option I may or may not be depending on their size and ownership. Option IV is exempt, so it is not required to prepare a financial report. As a result, the answer is B, which covers I, II, and III.

I \quad Companies with Enhanced Disclosure Securities on Offer II \quad Public Companies III

I $\quad$ Companies with Enhanced Disclosure Securities on Offer
II $\quad$ Public Companies
III