Which statement about concise financial reports is true?
A) The company has the right to send a concise report to the shareholder unless they request a full report.
B) Concise reports do not have to include a statement of changes in equity.
C) A full report must be sent to the shareholder unless they request a concise report.
D) The company must apply to ASIC if they want the right to issue concise reports rather than full reports.

Question

Quizplus · Accepted Answer

According to ASIC regulations, a company can choose to send a concise report to shareholders unless they request a full report. This means that shareholders must specifically request a full report if they want one, otherwise they will receive the concise report. Choice B is incorrect as a statement of changes in equity is a required component of both concise and full financial reports. Choice C is incorrect as sending a full report is not mandatory unless specifically requested. Choice D is incorrect as a company does not need to apply to ASIC to issue concise reports, but they must comply with ASIC regulations and guidelines on what must be included in a concise report.

Which Statement About Concise Financial Reports Is True