Audit Lowe Down – Australian Public Companies: Are You Ready for the Consolidated Entity Disclosure Statement?

Lowe Lippmann Chartered Accountants

Australian Public Companies: Are You Ready for the Consolidated Entity Disclosure Statement?

For years ending on or after 30 June 2024, Australian public company financial statements prepared under the Corporations Act are required to include a Consolidated Entity Disclosure Statement (CEDS). This includes not-for-profit companies limited by guarantee who are not ACNC registered.

The CEDS aims to provide transparency about entities within a company’s consolidated group through disclosure of information such as the name of each entity, incorporation details, type of entity and tax residency.

One crucial aspect of this new requirement is that materiality does not apply, every entity must be included, no matter how small. Directors must make a declaration that the information is true and correct, adding another layer of accountability. The auditors are required to provide their opinion on the CEDS.

The CEDS is generally located after the last note in the financial statements and before the auditor’s opinion.

This is a new addition to the Corporations Act (s295(3A) legislated with little notice and in collaborating with our clients, we have encountered complexities, particularly in determining the correct tax residency for some subsidiaries. This has often led to detailed discussions involving entities, their tax advisors, and auditors to ensure compliance.

We are in the middle of 30 June 2024 reporting season which means it is time to review your group structure and start gathering the necessary information and obtaining expert advice if necessary.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Practice Update – November 2025

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