CA ANZ and CPA Australia have lodged a joint submission supporting the proposals in ASIC Consultation paper CP 338 to update and reissue ASIC class order CO 10/654, which, without action, will sunset in April 2021. This class order was issued in 2010 following changes to the Corporations Act in 2010 that made separate parent entity financial statements unnecessary (replaced with disclosures).

However,  some entities still have obligations under other legislation (including chapter 7 of the  Corporations Act to prepare parent entity as well as consolidated reports, or still wish to do so in their specific circumstances. Therefore, this class order permits parent entity financial statements to be presented alongside consolidated financial statements in financial reports prepared under Chapter 2M of the Corporations Act 2001 for these entities. 

We agree with ASIC’s view that this class order is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework. We therefore support ASIC’s proposal to update and renew the class order for a further 10 years. We also support the minor revisions ASIC is proposing to the new draft legislative instrument, which update CO 10/654 as required and make it easier to understand without impacting its operation.