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The matters to be disclosed in the financial statements are contained in accounting standards, which are made by the Australian Accounting Standards Board (AASB) and which have the force of law under the Corporations Law. The annual financial statements consist of a balance sheet, a profit and loss statement and a cash flow statement. Under the Corporations Law, all disclosing entities, companies and registered managed investment schemes are required to maintain records which accurately record their financial transactions and which would enable the preparation of financial statements and the audit of those financial statements.Īnnual financial statements must be prepared by all entities except small proprietary companies. unlisted public companies and large proprietary companies (that is, a proprietary company that meets at least two of the following criteria: gross operating revenue of $10 million or more, gross assets of $5 million or more and 50 or more employees) and.disclosing entities (mainly listed corporations and registered managed investment schemes/prescribed interest undertakings) that have listed securities or have issued shares and other securities as a result of the circulation of a prospectus.The types of entities can be classified as: Australia has a differential disclosure regime under which financial reporting requirements are set according to the type of entity, principally on the basis of the level of public interest in the entity.