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ASIC extends and amends parent entity financial statement and auditor independence instruments


ASIC has extended the operation of the parent entity financial reporting and auditor independence legislative instruments.

ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 and ASIC Corporations (Auditor Independence) Instrument 2021/75 (the Principal Instruments) were due to expire on 1 April 2024 and 30 April 2024 respectively. ASIC has issued ASIC Corporations (Amendment) Instrument 2024/187 to extend the relief under the Primary Instruments for an additional five years.

ASIC has also amended the Principal Instruments to provide the same relief to registrable superannuation entities that is currently granted to companies, registered managed investment schemes and other disclosing entities. This aligns the treatment of registrable superannuation entities with that of other statutory audit clients.

A summary of our consultation process is outlined below.

Extension and amendment of the principal instruments

On 17 November 2023, ASIC announced a consultation to extend the relief in the Principal Instruments for a further five years seeking feedback on our proposal prior to 8 December 2023.

We received four submissions, which supported extending the operation of the Principal Instruments. Two submissions specifically supported further amendments to the Principal Instruments to align the treatment of registrable superannuation entity audit clients with that of other statutory audit clients. 


ASIC Corporations (Auditor Independence) Instrument 2021/75 provides the lead auditor for an audit relief from the requirement to disclose a contravention of paragraph R510.4(c) of APES 110 Code of Ethics for Professional Accountants (including Independence Standards). Specifically, this applies in relation to a financial interest held by a relevant person in the relevant entity or a controlled entity in the auditor’s independence declaration pursuant to section 307C of the Corporations Act 2001 in certain limited circumstances. 

ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 allows a parent entity, which is required to include consolidated financial statements in its financial report to also include its single entity financial statements in that report.

ASIC is Australia’s corporate, markets and financial services regulator. 

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