6Applicable entities

6 Applicable entities

Guide to this section

The purpose of this section is to set out which Commonwealth entities need to prepare financial statements.

Those entities that are captured by the definition below are reporting entities and need to prepare financial statements in accordance with this rule.

(1) Financial statements must be prepared for the following: (a) each Commonwealth entity that is not the parent entity in an economic entity; and (b) each economic entity, comprising the Commonwealth entity and its subsidiaries.

Note: Financial statements are not required to be prepared under this rule for

(a) a company for the purposes of the Corporations Act 2001; or
(b) the subsidiary of a Commonwealth entity;
as these are not Commonwealth entities.

(2) Where an entity is the parent entity in an economic entity, it must either: (a) prepare parent entity financial statements as well as consolidated financial statements; or (b) disclose parent entity supplementary information as prescribed in Regulation 2M.3.01 of the Corporations Regulations 2001 in a note to the consolidated financial statements of the economic entity.