Which of the following statements about concise financial reports is correct?
A) Concise reports do not have to include a statement of changes in equity.
B) A full report must be sent to the shareholder unless they request a concise report.
C) A company has the right to send a concise report to the shareholder unless the shareholder requests a full report.
D) A company must apply to ASIC if they want the right to issue concise reports rather than full reports.

Question

Quizplus · Accepted Answer

According to Australian law, a company can send a concise financial report to its shareholders unless they request a full report. However, the company still needs to meet certain requirements for the concise report, including providing a statement of financial position, statement of comprehensive income, and certain notes to the financial statements. No application to ASIC is required for this. Option A is incorrect because a statement of changes in equity is a compulsory item for both full and concise reports. Option B is incorrect because the opposite is true – a concise report can be provided unless the shareholder specifically requests a full report. Option D is also incorrect because a company's right to issue a concise report is based on the law, not on any application to ASIC.

Which of the Following Statements About Concise Financial Reports Is