Changes to ASIC financial reporting relief for wholly-owned companies

To add a new company to an existing deed of cross guarantee for the purposes of the benefit of the ASIC financial reporting relief for wholly-owned companies, the existing deed of cross guarantee will need to varied, or a new deed of cross guarantee entered into, to reflect the new ASIC Pro Forma.

On 28 September 2016, the Australian Securities and Investments Commission remade its financial reporting relief for wholly-owned companies - ASIC Corporations (Wholly-owned Companies) Instrument 2016/785. The new ASIC instrument replaced ASIC Class Order [CO 98/1418].

The new ASIC Instrument applies in relation to a financial year ending on or after 1 January 2017. The old ASIC Class Order continues to apply, despite its repeal, in relation to a financial year ending before 1 January 2017.