Penguin Ltd was incorporated as a public company on 1 July 20X0 with 10 shareholders.Each shareholder contributed 10% of the initial capital.In August 20X1, Penguin Ltd's directors decided to raise some more equity capital and list Penguin Ltd's shares on the Australian Securities Exchange (ASX).The capital was raised and the shares were listed on the ASX on 1 April 20X2.The directors of Penguin Ltd have always considered the company to be a reporting entity.Which statement about Penguin Ltd's financial reporting obligations before and after 1 April 20X2 is correct?
A)Penguin Ltd must now prepare full year and half yearly financial reports, whereas before 1 April 20X2 it only had to prepare full year financial reports
B)Penguin Ltd must now prepare full year and half yearly financial reports, and this was the requirement before 1 April 20X2
C)Penguin Ltd must prepare only half yearly financial reports, whereas before 1 April 20X2 it had to prepare both full year and half yearly financial reports
D)Penguin Ltd must only prepare full year financial reports, and this was the requirement before 1 April 20X2

Question

Quizplus · Accepted Answer

Before listing on the ASX, Penguin Ltd, as a reporting entity, was required to prepare full year financial reports. After listing on the ASX on 1 April 20X2, it is required to prepare both full year and half yearly financial reports to comply with ASX listing rules and the Corporations Act 2001.

Penguin Ltd Was Incorporated as a Public Company on 1