Rule Guidance Notes
20 August 2004
Important information for ASX Listed Entities
Appendix 4E Preliminary Final Report
Entities are reminded that the shortened two-month deadline for filing their Appendix 4E
(DOC 28KB) Preliminary Final Reports applies for financial periods ending on or after 30 June 2004. This brings the deadline for Appendix 4E into line with
(DOC 28KB) and
28KB). In prior years the deadline was 75 days.
Under listing rule 4.3B, the information required by listing rule 4.3A (i.e. Appendix 4E Preliminary Final Report) must be given to ASX:
- immediately all of the information or documents becomes available; and;
- no later than when any accounts are lodged with ASIC or the regulatory authorities of the jurisdiction in which the entity is established; or;
- in any event, for a year ended on or after 30 June 2004, no later than two months after the end of the accounting period.
The effective final deadline for Appendices 4D, 4E and 4F for periods ended 30 June 2004 is Tuesday 31 August 2004.
AASB 1047: Disclosing the Impacts of Adoption of Australian Equivalents to AIFRS
ASX has received a number of enquiries about whether (and if so, where) in the ASX Appendices 4D, 4E and 4F an entity should provide the information required by AASB 1047 ‘Disclosing the Impacts of Adopting of Australian Equivalents to International Financial Reporting Standards’. ‘Australian Equivalents to International Financial Reporting Standards’ are abbreviated to AIFRS in this Update.
AASB 1047 applies to general purpose financial reports for annual and interim financial periods ending on or after 30 June 2004. In the view of ASX, AASB 1047 applies to each of the Appendices 4D, 4E and 4F from 30 June 2004.
In any event, the Appendices are a set of minimum requirements and it is for each entity to decide what additional information is required to be provided in order to adequately inform the market of its performance and circumstances.
Appendix 4E has a specific requirement for the disclosure of any other significant information needed by an investor to make an informed assessment of the entity’s financial position.
There is also a requirement to provide a commentary that discusses any other factors that have affected the results in the period or are likely to affect results in the future, including those where the effect could not be quantified. This was included in Appendix 4E specifically to deal with impending changes to the business environment of the entity such as changes to accounting standards which are likely to affect the entity.
AASB 1047 requires the following disclosures:
- an explanation of how the transition to AIFRS is being managed;
- an explanation of the key differences in accounting policies that are expected to arise from the adoption of AIFRS.
In addition, for financial reports for annual and interim reporting periods ending on or after 30 June 2005, AASB 1047 requires disclosure in the financial report of:
- any known or reliably estimable information about the impacts on the financial report had it been prepared using AIFRS; and
- if these impacts are not known or reliably estimable, a statement to that effect.
Appendices 4D, 4E and 4F are largely free form (except that there must be a first page clearly identifying the nature and dating of the Appendix and the ‘Results for announcement to the market’ information must be at the beginning of the Appendix). Consequently, the information relating to the effect of AIFRS can be provided wherever in the Appendix that the entity judges it will receive the appropriate attention.
Appendices 4D, 4E and 4F are self-contained documents and all the information required in an Appendix should be supplied in that Appendix or as attachments to the Appendix. ASX recognises that, in some circumstances, some of the information required may be so voluminous or elaborate that its inclusion in the body of an Appendix could lead to confusion or significantly detract from the usefulness of an Appendix. Consequently, entities may attach some of the information required by an Appendix to that Appendix and include a cross-reference to the attachment in the body of the Appendix. Entities should not use cross-references to other, separately supplied documents to supply the information required by the Appendices.
In addition to the requirements of AASB 1047 that relate to periodic reporting, entities are reminded that they may have obligations to report the impact of adoption of AIFRS under continuous disclosure and listing rule 3.1. An Update on the continuous disclosure aspects of adoption of AIFRS was issued in January 2004.
January 2004 Companies Update (PDF 81KB).
Notices of Meeting
Companies are reminded of the importance of ensuring that notices of meeting and related matters comply with ASX Listing Rules. If a company is proposing to issue securities, Listing Rule 15 requires that ASX must examine both the draft notice of meeting containing the resolution (LR 15.1.4) and the accompanying document seeking approval
The document must not be finalised until ASX confirms that it has no objections to it. ASX will notify the company within five business days if it objects or needs more time to examine the document.
Listing Rule 3.17 requires companies to give ASX a copy of any document it sends to security holders without delay. This information will then be immediately released to the market across the Company Announcement Platform (CAP). This ensures the effective dissemination of the information in a timely manner.
Those investors who rely solely on the release of information across CAP are disadvantaged by a company's non-compliance with this requirement.
ASX is dedicated to ensuring that its Listed Rules are complied with - market integrity demands it - and is considering a range of options to deal with non-compliance.
In preparing draft notices of meeting, companies are reminded of the assistance that their ASX Company Adviser can provide and are also referred to Attachment A: Guidelines for notices of meeting released by the ASX Corporate Governance Council within its Principals of Good Corporate Governance and Best Practice Recommendations in March 2003.