What financial statements do we need to provide?

Answer

AUSTRALIA

If your entity has existed for more than 2 years, you are required to provide:

1. Statement of solvency, as at the end of the last financial year reflecting your financial position and that in your opinion there are reasonable grounds to believe you will be able to pay your debts as and when they fall due; and

2. A complete set of financial statements or an independent audit report conducted by a registered company auditor (RCA) within 4 months after the end of the financial year to which the statement relates.

    

   A complete set of financial statements compromises of the following:

   i.                  Audited balance sheet;

   ii.                 Audited Statement of comprehensive income (profit and loss statement);

   iii.                Cash flows statements;

   iv.               Applicable notes to support the above three items; and

   v.                Comparative information for current and proceeding year in the financial statements (items i-ii).

If your entity has NOT existed for more than 2 years, you are required to provide:

1. Statutory declaration of the entity’s solvency, that you are able to pay your debts as and when they fall due; and

2. Independent audit report by a registered company auditor to verify the Statutory declaration of the entity’s solvency.  

If your entity was INSOLVENT in either or both of the last 2 years, you are required to provide:

1. Statement of the period during which the entity was insolvent; and

2. Statutory declaration of the entity’s solvency; and

3. Independent audit report by a registered auditor to verify the Statement of the period during with the entity was insolvent.

Note: Templates of the State of solvency and Statutory declaration of the entity’s solvency are available on the Franchisor Website.