Schedule 13
Criteria for small company and small group
THIRTEENTH SCHEDULESections 8(7) and 205C(5)Criteria for small company and small group
1. For the purposes of section 205C —
a company is a small company if it qualifies as a small company under paragraph 2, 3 or 4, whichever may be applicable, and the company continues to be a small company until it ceases to be a small company under paragraph 5; and
a group is a small group if it qualifies as a small group under paragraph 7, 8 or 9, whichever may be applicable, and the group continues to be a small group until it ceases to be a small group under paragraph 10.
2. A company is a small company from a financial year if —
it is a private company throughout the financial year; and
it satisfies any 2 of the following criteria for each of the 2 financial years immediately preceding the financial year:
the revenue of the company for each financial year does not exceed $10 million;
the value of the company’s total assets at the end of each financial year does not exceed $10 million;
it has at the end of each financial year not more than 50 employees.
3. Despite paragraph 2, where a company has not reached its third financial year after incorporation, a company is a small company —
from its first financial year after incorporation if —
it is a private company throughout its first financial year; and
it satisfies any 2 of the following criteria for its first financial year:
the revenue of the company for its first financial year does not exceed $10 million;
the value of the company’s total assets at the end of its first financial year does not exceed $10 million;
it has at the end of its first financial year not more than 50 employees; or
from its second financial year after incorporation if —
it is a private company throughout its second financial year; and
it satisfies any 2 of the following criteria for its second financial year:
the revenue of the company for its second financial year does not exceed $10 million;
the value of the company’s total assets at the end of its second financial year does not exceed $10 million;
it has at the end of its second financial year not more than 50 employees.
4. Despite paragraph 2, a company which was incorporated before 1 July 2015 is a small company —
from the first financial year that commences on or after 1 July 2015 if —
it is a private company throughout the first financial year; and
it satisfies any 2 of the following criteria for the first financial year:
the revenue of the company for the first financial year does not exceed $10 million;
the value of the company’s total assets at the end of the first financial year does not exceed $10 million;
it has at the end of the first financial year not more than 50 employees; or
from the second financial year that commences on or after 1 July 2015 if —
it is a private company throughout the second financial year; and
it satisfies any 2 of the following criteria for the second financial year:
the revenue of the company for the second financial year does not exceed $10 million;
the value of the company’s total assets at the end of the second financial year does not exceed $10 million;
it has at the end of the second financial year not more than 50 employees.
5. Subject to paragraph 6, a small company ceases to be a small company from a financial year if —
it ceases to be a private company at any time during the financial year; or
it does not satisfy any 2 of the following criteria for each of the 2 consecutive financial years immediately preceding the financial year:
the revenue of the company for each financial year does not exceed $10 million;
the value of the company’s total assets at the end of each financial year does not exceed $10 million;
it has at the end of each financial year not more than 50 employees.
6. Paragraph 5 does not apply —
to a company that has not reached its third financial year after incorporation; or
in the case of a company that was incorporated before 1 July 2015, to a company that has not reached its third financial year after that date.
7. A group is a small group from a financial year if the group satisfies any 2 of the following criteria for each of the 2 consecutive financial years immediately preceding the financial year:
the consolidated revenue of the group for each financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of each financial year does not exceed $10 million;
the group has at the end of each financial year an aggregate number of employees of not more than 50.
8. Despite paragraph 7, a group is a small group —
from its first financial year after it is formed if it satisfies any 2 of the following criteria for its first financial year:
the consolidated revenue of the group for its first financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of its first financial year does not exceed $10 million;
the group has at the end of its first financial year an aggregate number of employees of not more than 50; or
from its second financial year after it is formed if it satisfies any 2 of the following criteria for its second financial year:
the consolidated revenue of the group for its second financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of its second financial year does not exceed $10 million;
the group has at the end of its second financial year an aggregate number of employees of not more than 50.
9. Despite paragraph 7, a group which is formed before 1 July 2015 is a small group —
from the first financial year that commences on or after 1 July 2015, if it satisfies any 2 of the following criteria for the first financial year:
the consolidated revenue of the group for the first financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of the first financial year does not exceed $10 million;
the group has at the end of the first financial year an aggregate number of employees of not more than 50; or
from the second financial year that commences on or after 1 July 2015 if it satisfies any 2 of the following criteria for the second financial year:
the consolidated revenue of the group for the second financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of the second financial year does not exceed $10 million;
the group has at the end of the second financial year an aggregate number of employees of not more than 50.
10. Subject to paragraph 11, a small group ceases to be a small group from a financial year if it does not satisfy any 2 of the following criteria for 2 consecutive financial years immediately preceding the financial year:
the consolidated revenue of the group for each financial year does not exceed $10 million;
the value of the consolidated total assets of the group at the end of each financial year does not exceed $10 million;
the group has at the end of each financial year an aggregate number of employees of not more than 50.
11. Paragraph 10 does not apply —
to a group that has not reached its third financial year after it is formed; or
in the case of a group that was formed before 1 July 2015, to a group that has not reached its third financial year after that date.
12. For the purposes of this Schedule —
the question whether an entity is part of a group is to be decided in accordance with the Accounting Standards;
in the case —
where consolidated financial statements are prepared by a parent in relation to a group, the “consolidated total assets” and “consolidated revenue” of the group are to be determined in accordance with the accounting standards applicable to the group; or
where consolidated financial statements are not prepared by a parent in relation to a group —
“consolidated total assets” means the aggregate total assets of all the members of the group; and
“consolidated revenue” means the aggregate revenue of all the members of the group; and
“parent” has the meaning given by the Accounting Standards, but does not include any entity which is a subsidiary of any other entity within the meaning of the Accounting Standards.
13. For the purposes of this Schedule —
a reference to a company being a small company from a financial year means that the company is a small company for that financial year and every subsequent financial year until it ceases to be a small company under paragraph 5;
a reference to a group being a small group from a financial year means that the group is a small group for that financial year and every subsequent financial year until it ceases to be a small group under paragraph 10.
14. To avoid doubt —
a company that has ceased to be a small company under paragraph 5 may become a small company again if it subsequently qualifies as a small company under paragraph 2; and
a group that has ceased to be a small group under paragraph 10 may become a small group again if it subsequently qualifies as a small group under paragraph 7.[36/2014]