When determining whether a proprietary company is classified as small or large, the consolidated gross assets test is determined based on the average of the opening and closing gross assets.

Question

Quizplus · Accepted Answer

The classification of a proprietary company as small or large in Australia is based on thresholds related to annual revenue, the value of gross assets, and the number of employees. The consolidated gross assets test for determining company size does not specifically use the average of opening and closing gross assets; it considers whether the company and its entities it controls have a total gross asset value at the end of the financial year that meets a certain threshold.

When Determining Whether a Proprietary Company Is Classified as Small