Australia: Accounting Standards

An Australian company's AUD 168,000 fine for failing to lodge audited financial reports reveals a widespread challenge: businesses often cross into mandatory audit territory through organic growth without realizing it. As revenue, assets, or headcount expand, companies can unintentionally trigger obligations under the Corporations Act, with consequences extending far beyond regulatory penalties to impact financing, transactions, and investor confidence.

On 27 March 2024, Australia's climate disclosure regime moved a significant step closer to implementation, with the federal government's introduction of proposed legislation into Parliament.

We are seeing increased earn-outs with business acquisitions and a widespread use of profit-based employee incentives.