45 Meaning of large

(1)

For the purposes of an enactment that refers to this section, an entity (other than an overseas company or a subsidiary of an overseas company) is large in respect of an accounting period if at least 1 of the following paragraphs applies:

(a)

as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $60 million:

(b)

in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $30 million.

Example

ABC Limited has an accounting period of 1 April 2014 to 31 March 2015.

The balance dates of the 2 preceding periods are 31 March 2013 and 31 March 2014. As at 31 March 2013, ABC Limited and its subsidiaries had total assets of $50 million. As at 31 March 2014, those total assets were $55 million.

During the period 1 April 2012 to 31 March 2013, ABC Limited and its subsidiaries had total revenue of $25 million. During the period 1 April 2013 to 31 March 2014, that total revenue was $35 million. Given that the $30 million threshold in paragraph (b) is crossed in only 1 of those preceding periods, paragraph (b) is not satisfied.

ABC Limited is not a large company in relation to the accounting period of 1 April 2014 to 31 March 2015.

(2)

For the purposes of an enactment that refers to this section, an overseas company or a subsidiary of an overseas company is large in respect of an accounting period if at least 1 of the following paragraphs applies:

(a)

as at the balance date of each of the 2 preceding accounting periods, the total assets of the entity and its subsidiaries (if any) exceed $20 million:

(b)

in each of the 2 preceding accounting periods, the total revenue of the entity and its subsidiaries (if any) exceeds $10 million.

(3)

Despite subsections (1) and (2), an entity is not large in respect of an accounting period (period A) if—

(a)

the entity was an inactive entity in respect of period A; and

(b)

the entity, within 5 months after the end of period A, delivers to the Registrar a declaration, in the prescribed form, stating that it was an inactive entity in respect of period A.

(4)

In subsection (3), an entity is an inactive entity in respect of an accounting period if,—

(a)

during that period, the entity—

(i)

has not derived, or been deemed to have derived, any income; and

(ii)

has no expenses; and

(iii)

has not disposed of, or been deemed to have disposed of, any assets; and

(b)

at the end of that period, the entity has no subsidiaries or all of its subsidiaries are inactive entities in respect of that period.

(5)

In determining whether an entity is an inactive entity, no account may be taken of any—

(a)

statutory company filing fees or associated accounting or other costs; or

(b)

bank charges or other minimal administration costs totalling not more than $50 in the accounting period; or

(c)

interest earned on any bank account during the accounting period, to the extent that the total interest does not exceed the total of any charges or costs incurred by the entity to which paragraph (b) applies.

Section 45(3): replaced, on 1 July 2015, by section 10 of the Financial Reporting Amendment Act 2014 (2014 No 64).