(1) A financial report and a directors' report must be prepared for each financial year by:

(a)

all disclosing entities; and

(b)

all public companies; and

(c)

all large proprietary companies; and

(d)

all registered schemes.

Note: This Chapter only applies to disclosing entities incorporated or formed in Australia (see subsection 285(2)).

(2) A small proprietary company has to prepare the financial report and directors' report only if:

(a)

it is directed to do so under section 293 or 294; or

(b)

it was controlled by a foreign company for all or part of the year and it is not consolidated for that period in financial statements for that year lodged with ASIC by:

(i)

a registered foreign company; or

(ii)

a company, registered scheme or disclosing entity.