{"id":"F2016L01325","name":"ASIC Corporations (Synchronisation of Financial Years) Instrument 2016/189","slug":"asic-corporations-synchronisation-of-financial-years-instrument-2016-189","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438911,"registerId":"F2016L01325-fast-fetch-1775955134907","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Synchronisation of Financial Years) Instrument 2016/189","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: ASIC Corporations (Synchronisation of Financial Years) 2016\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Corporations (Synchronisation of Financial Years) Instrument 2016/189\n\nI, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\nDate: 15 August 2016\n\n \n\n \n\nStephen Yen\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc459026145)\n\n[1 Name of order](#_Toc459026146)\n\n[2 Commencement](#_Toc459026147)\n\n[3 Authority](#_Toc459026148)\n\n[4 Definitions](#_Toc459026149)\n\n[Part 2—Order](#_Toc459026150)\n\n[5 Relief to enable synchronisation of financial year with that of a foreign parent](#_Toc459026151)\n\n \n\nPart 1—Preliminary\n\n1  Name of order\n\nThis is the ASIC Corporations (Synchronisation of Financial Years) Instrument 2016/189.\n\n2  Commencement\n\nThis instrument commences on the day after it is recorded in the Federal Register of Legislation.\n\nNote: The register may be accessed at <http://www.legislation.gov.au/>.\n\n3  Authority\n\nThis instrument is made under subsection 341(1) of the Corporations Act 2001.\n\n4  Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nPart 2—Order\n\n5  Relief to enable synchronisation of financial year with that of a foreign parent\n\n(1) An entity that is a company, registered scheme or disclosing entity and a director of the entity do not have to comply with a requirement arising from or under Part 2M.3 of the Act to the extent that:\n\n(a) apart from this order, the entity or director would not comply with the requirement; and\n\n(b) the non-compliance would result merely from:\n\n(i) the entity or director complying with the requirement in relation to a period that:\n\n(A) is not a financial year of the entity within the meaning of section 323D of the Act; and\n\n(B) is a financial year of the entity within the meaning of the law (foreign law) in the place of origin of a controlling entity (foreign parent) which was not incorporated or formed in Australia; or\n\n(ii) the entity or director complying with the requirement in relation to a period that:\n\n(A) is not a half-year of the entity; and\n\n(B) would be a half-year of the entity if the financial year of the entity within the meaning of the foreign law were the financial year of the entity for the purposes of subsection 323D(5) of the Act; and\n\n(c) the entity or director is complying with the requirement in relation to that period solely for the purpose of synchronising the financial year (within the meaning of the foreign law) of the entity with the financial year of the foreign parent.\n\nWhere relief applies\n\n(2) The relief in subsection (1) is available where both of the following apply:\n\n(a) the entity or director reasonably believes that:\n\n(i) the foreign parent was required by the foreign law to cause the financial year (within the meaning of the foreign law) of the entity to be changed; and\n\n(ii) the financial year (within the meaning of the foreign law) of the entity has been changed in accordance with that requirement;\n\n(b) the financial year (within the meaning of the foreign law) is no longer than 18 months.\n\nConditions\n\n(3) The relief in subsection (1) is subject to the following conditions:\n\n(a) if the financial year (within the meaning of the foreign law) is equal to or greater than 12 months, the directors of the entity have formed the opinion no earlier than 12 months and no later than 15 months after the commencement of that financial year that there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable (and evidenced this opinion in the minutes of a meeting of directors);\n\n(b) if the financial year (within the meaning of the foreign law) is a period of less than 12 months, the requirements of the Act, the Corporations Regulations 2001, the Corporations (Fees) Regulations 2001 and any disallowable legislative instruments made by ASIC are applied in respect of that financial year as if:\n\n(i) paragraph 45A(2)(a) of the Act applied as if the reference to “the financial year” in that paragraph were a reference to the period of 12 months ending at the end of the financial year (within the meaning of the foreign law); and\n\n(ii) paragraph 45A(3)(a) of the Act applied as if the reference to “the financial year” in that paragraph were a reference to  the period of 12 months ending at the end of the financial year (within the meaning of the foreign law);\n\n(c) if the entity or the director is relying on the relief in subparagraph (1)(b)(i), the notes to the financial statements of the entity that form part of the financial report prepared for the purposes of subsection 292(1) of the Act include a brief statement as to the relief provided by this instrument;\n\n(d) if the entity or the director is relying on the relief in subparagraph (1)(b)(ii), the notes to the financial statements of the entity that form part of the financial report prepared for the purposes of section 302 of the Act include a brief statement as to the relief provided by this instrument.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The instrument narrows the practical scope of Part 2M.3 obligations for affected entities and their directors by exempting them from certain timing/compliance requirements when synchronising a financial year with a foreign parent, subject to conditions (see s5(1)–(3)). It replaces strict compliance with procedural requirements: the entity/directors must hold a reasonable belief about the foreign-law compulsion (s5(2)(a)), the substituted year is capped at 18 months (s5(2)(b)), directors must form and minute a solvency opinion for 12+ month substituted years within a specified 12–15 month window (s5(3)(a)), alternative 12‑month application of paragraph 45A for short years is imposed (s5(3)(b)), and brief disclosure notes must be included in financial statements where relief is relied on (s5(3)(c)–(d)). The instrument is made under ASIC's subsection 341(1) authority (s3)."},"complexity_factors":["Cross-border interaction: relief depends on the entity's reasonable belief about a foreign law requirement and the foreign law definition of financial year (s5(2)(a)).","Temporal limits: the alternative financial year must be no longer than 18 months (s5(2)(b)).","Two different compliance tracks depending on length of the substituted year (>=12 months vs <12 months) with distinct documentary and accounting treatments (s5(3)(a)–(b)).","Director-level affirmative step: directors must form and record a solvency opinion within a narrow timing window for 12+ month substituted years (s5(3)(a)).","Regulatory cross-references: applies and modifies operation of other Act provisions (eg paragraph 45A(2)(a) and 45A(3)(a)) and requires specified notes in financial statements (s5(3)(b)–(d)).","Limited scope relief: applies only to compliance obligations arising under Part 2M.3 and only for the purpose of synchronising with a foreign parent (s5(1), s5(1)(c)).","Instrument-making power: made by ASIC under subsection 341(1) of the Corporations Act, reflecting delegated regulatory discretion (s3)."],"plain_english_summary":"This instrument allows Australian companies, registered schemes and disclosing entities (and their directors) to depart from certain timing requirements in Part 2M.3 of the Corporations Act when they change their financial year to match the financial year required by a foreign parent. Relief is conditional (the entity must reasonably believe the foreign law required the change and the foreign-year is no longer than 18 months) and carries documentary and solvency-opinion requirements for directors (see s5)."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument remains tightly focused on its original purpose: providing relief for financial year synchronisation with foreign parents. The scope has not expanded beyond this specific administrative facilitation for multinational corporate groups."},"complexity_factors":["Nested conditional logic with multiple sub-paragraphs (e.g., subparagraph (1)(b)(i)(A) and (B))","Cross-references to multiple external legislative instruments (Corporations Act 2001, Corporations Regulations 2001, Corporations (Fees) Regulations 2001, and other ASIC instruments)","Dual-track conditions depending on whether the financial year is above or below 12 months","Requires understanding of defined terms from the Corporations Act ('financial year', 'disclosing entity', 'registered scheme') that are not defined within this instrument","Specific evidentiary requirements (directors' opinions recorded in minutes, disclosure notes in financial statements)","Distinction between relief for full financial year synchronisation versus half-year reporting"],"plain_english_summary":"This instrument temporarily exempts Australian companies, registered schemes and disclosing entities controlled by foreign parents from standard 12‑month reporting rules so they can align their financial year with a foreign parent's reporting period. It lets affected entities use non‑standard year lengths (up to 18 months) and prepare mismatched reporting periods subject to conditions.\n\nThe relief matters because it avoids duplicate reporting and administrative burden; it requires the foreign parent’s legal requirement, director solvency confirmation for extended years, and disclosure that the exemption is being used."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189","history":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189/history","analysis":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189/analysis","conflicts":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189/conflicts","importantCases":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189/important-cases","documents":"/api/acts/asic-corporations-synchronisation-of-financial-years-instrument-2016-189/documents"}}