b'15Small proprietary company notThe application for the reporting frameword is set out as controlled by a foreign corporation follows:For small proprietary companies controlled by shareholdersTier 1 Tier 2/SPFSother than a foreign corporation, an audited financial reportFor-profit PublicNon-public is required if the company received a request to lodge anaccountabilityaccountabilityaudited financial report from more than 5% of shareholders or(e.g. entities ASIC. listed on the Small proprietary company controlledstock exchange)by a foreign corporation General purpose financial statements for significant global entitiesIf the parent company lodges consolidated financial reports with ASIC and the subsidiary is party to a cross guarantee,Under the Australian Tax Administration Act, a significant then no financial reports need to be lodged. global entity (SGE) is required to lodge a general-purpose financial statement (GPFS) with the Australian Tax Office If the company is a small proprietary company and not part(ATO) in specific circumstances. This requirement applies in of a large Australian group, then an application can be madeaddition to any reporting obligation under the Corporations to exempt the small company from lodgement of an auditedAct.financial report.Tiers of reportingThis means that, unless an SGEis otherwise preparing GPFS There are three frameworks of financial reporting in Australia: to lodge with the Australian Securities and Investments 1. Tier 1 General Purpose Financial Statements (GPFS).Commission (ASIC), the entity will be required to lodge GPFS The reporting under this framework requires extensivewith the ATO.disclosures under the Australian Accounting Standards. A significant global entity is one whose consolidated income 2. The Tier 2 General Purpose Financial Statements of the global parent entity or the entity itself is great than Reduced Disclosure Requirements. Under this framework,AUD$1 billion.there are substantially reduced disclosure requirements. An entity applying Tier 2 may elect to comply with additional Tier 1 requirements. 3.Special Purpose Financial Statements (SPFS). These are financial statements other than GPFS. SPFS can be prepared in instances where an entity is required to prepare financial statements under the Corporations Act. Alternatively, SPFS may be prepared for non-Corporations Act purposes. The disclosures required under this framework are further reduced compared to either Tier 2 reporting.'