Synchronising financial years of co-operative and controlled entities (section 295 (4)) (cf Corporations Act section 323D (3) and (4))
3.15 Synchronising financial years of co-operative and controlled entities (section 295 (4)) (cf Corporations Act section 323D (3) and (4))
The purpose of this regulation is to provide for the adoption by a co-operative of the same financial year for each entity that the co-operative controls, as contemplated by section 295
of the Law.
A co-operative that has to prepare consolidated financial statements must do whatever is necessary to ensure that the financial years of the consolidated entities are synchronised with its own financial years.
The co-operative must achieve this synchronisation by the end of 12 months after the situation that calls for consolidation arises.
To facilitate this synchronisation, the financial year for a controlled entity may be extended or shortened, but the extended financial year cannot be longer than 18 months.
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