ASIC Class Order [CO 98/107]
NSW workers compensation statutory funds
This instrument has effect under subsection 341(1) of the Corporations Act 2001.
This compilation was prepared on 1 September 2005 taking into account amendments up to [CO 04/666].
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
Corporations Act 2001 — Section 341(1) — Class Order and Revocation
Pursuant to subsection 341(1) of the Corporations Act 2001 (“the Act”) the Australian Securities and Investments Commission hereby makes an order in respect of each company and disclosing entity which is:
(a) licensed under the Workers Compensation Act 1987 of New South Wales to provide workers compensation liability insurance; or
(b) the parent entity of such a company or disclosing entity,
(“the Entity”), relieving the Entity from compliance with the requirements of the Act specified in the Schedule in relation to financial years and half-years commencing on or before 31 December 2004 where:
(c) the financial report contains a separate financial report in respect of the statutory funds (“the separate financial report”) that:
(i) is prepared in accordance with the requirements set out in accounting standard AASB 1034 “Information to be Disclosed in Financial Reports” or, if applicable to the Entity's financial statements, accounting standards AASB 1018 “Statement of Financial Performance”, AASB 1034 “Financial Report Presentation and Disclosures” and AASB 1040 “Statement of Financial Position” except to the extent that they are prepared in accordance with requirements specified in writing by the WorkCover Authority of NSW (“the Authority”) which differ from the requirements set out in those accounting standards; and
(ii) gives a true and fair view of the matters required to be dealt with;
(d) the financial report contains notes:
(i) explaining the nature of the statutory funds and the Entity's or controlled entity's rights and obligations in respect of the same;
(ii) providing details of the relief given by this class order; and
(iii) providing details of the requirements specified by the Authority;
(e) if a concise financial report is prepared, accounting standard AASB 1039 “Concise Financial Reports” is applied as if paragraph 5.2 were replaced by the following paragraph:
“5.2 Each financial statement must be presented as in the financial report, in accordance with current Accounting Standards (as modified by the application of any relief provided by the Australian Securities and Investments Commission pursuant to s 340 or s 341 of the Corporations Act), except for the omission of cross-references to notes to the financial statements in the financial report.”; and
(f) any concise financial report for the accounting period includes the statement “ASIC Class Order 98/107 has been applied in accounting for New South Wales workers compensation statutory funds managed by the entities in the economic entity.” or a similar statement.
Schedule
Subsections 295(2) and 296(1) and section 297 of the Act insofar as those provisions require the Entity to incorporate details of the performance and state of affairs of the statutory funds required to be maintained by the Entity or a controlled entity of the Entity pursuant to the Workers Compensation Act 1987 of New South Wales (“the statutory funds”) in the financial report.
Pursuant to subsection 341(1) of the Corporations Law the Australian Securities and Investments Commission hereby revokes Class Order Number 97/1014 dated 9 July 1997 with effect from:
(i) in respect of entities which apply the relief provided by Class Order 98/0095 dated 10 July 1998, financial years ending after 7 July 1998; and
(ii) in all other cases, financial years ending after 30 June 1998.
Notes to ASIC Class Order [CO 98/107]
Note 1
ASIC Class Order [CO 98/107] (in force under subsection 341(1) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the Tables below.
Table of Instruments
Instrument number | Date of making or FRLI registration | Date of commencement | Application, saving or transitional provisions |
[CO 98/107] | 10/7/1998 | 10/7/1998 | - |
[CO 99/90] | 11/2/1999 | 11/2/1999 | - |
[CO 00/321] | 8/2/2000 | 8/2/2000 | - |
[CO 04/666] | 1/7/2004 | 1/7/2004 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
First para | am. [CO 99/90]; [CO 00/321]; [CO 04/666] |
First para (e) and (f) | ad. [CO 99/90] |
Class order | am. [CO 04/666] |
Overview
The ASIC Class Order [CO 98/107] was enacted in 1998 under the Corporations Act 2001 to address the need for specific financial reporting requirements for companies licensed under the Workers Compensation Act 1987 of New South Wales to provide workers compensation liability insurance. The Australian Securities and Investments Commission (ASIC) introduced this order to provide relief to these entities from certain compliance requirements of the Corporations Act, where their financial reports include a separate financial report for the statutory funds. The policy objective of this class order is to ensure that financial reports provide a true and fair view of the statutory funds while relieving the entities from the burden of complying with specific disclosure requirements related to statutory funds in their primary financial reports. This order was made under the authority granted by the Australian Parliament and applies to companies and disclosing entities that meet the specified criteria, aiming to streamline the financial reporting process for these entities.
Scope and Application
ASIC Class Order [CO 98/107] applies to companies and disclosing entities licensed under the Workers Compensation Act 1987 of New South Wales to provide workers compensation liability insurance, as well as to their parent entities. This legislation is instrumental in relieving these entities from specific compliance requirements under the Corporations Act 2001, namely those related to the incorporation of details concerning the performance and state of affairs of the statutory funds in their financial reports. The order is applicable to financial years and half-years commencing on or before 31 December 2004, provided that the financial report includes a separate financial report for the statutory funds prepared in accordance with the specified accounting standards or any written requirements by the WorkCover Authority of New South Wales. The relief granted by this order includes modifications to the financial reporting standards, such as the application of AASB 1039 “Concise Financial Reports” with a specified amendment, and requires the inclusion of a statement acknowledging the application of ASIC Class Order 98/107 in any concise financial reports. This order, effective under subsection 341(1) of the Corporations Act, also revokes the previous Class Order 97/1014 with effect from specified dates, thereby ensuring the continued evolution and adaptation of compliance requirements.
Key Provisions
The ASIC Class Order [CO 98/107] provides specific exemptions from certain financial reporting requirements under the Corporations Act 2001 for companies and disclosing entities licensed under the Workers Compensation Act 1987 of New South Wales to provide workers compensation liability insurance, or their parent entities. This order applies to financial years and half-years commencing on or before 31 December 2004. According to section (a), the entities covered must be licensed under the NSW Workers Compensation Act 1987 for workers compensation liability insurance. The financial report of the entity must include a separate financial report for the statutory funds, which must be prepared in accordance with AASB 1034 or, if applicable, AASB 1018, AASB 1034, and AASB 1040, except where the WorkCover Authority of NSW specifies different requirements in writing. This is detailed in sections (c)(i) and (ii). Additionally, the financial report must contain explanatory notes about the statutory funds, the entity's rights and obligations, details of the relief provided by this order, and the requirements specified by the Authority, as outlined in section (d). If a concise financial report is prepared, AASB 1039 must be applied with a specific modification noted in section (e). A statement indicating the application of ASIC Class Order 98/107 must be included in any concise financial report for the accounting period, as per section (f).
The obligations imposed by the Class Order include preparing a financial report that adheres to the specified accounting standards and contains explanatory notes on statutory funds and related obligations. Entities must ensure that their financial reports are prepared in accordance with AASB 1034 or, if applicable, AASB 1018, AASB 1034, and AASB 1040, with any deviations from these standards as specified in writing by the WorkCover Authority of NSW. Furthermore, the financial report must include a true and fair view of the statutory funds' performance and state of affairs, and explanatory notes regarding the statutory funds, the entity's rights and obligations, the relief provided by this order, and the Authority's requirements. If a concise financial report is prepared, it must comply with AASB 1039 with the specified modification and include a statement acknowledging the application of ASIC Class Order 98/107.
For breaches of the provisions set out in this Class Order, the potential consequences include both civil and criminal penalties. The Corporations Act 2001 stipulates various penalties for non-compliance with financial reporting requirements, including fines and imprisonment for individuals. Specifically, for companies, the maximum penalty can be substantial, and for individuals, penalties can include fines up to a certain amount and imprisonment for several years, depending on the severity and intent behind the breach. These penalties underscore the importance of adhering to the financial reporting requirements and the potential legal repercussions for failure to comply.