What disclosure documents do you need to give potential investors when raising funds? (2023)

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Important notice:You must lodge your disclosure document with ASIC before it can be used to raise funds. Disclosure documents are now lodged with ASIC through the ASIC Regulatory Portal. For more information, see how you lodge fundraising and corporate finance documents.

As a general rule, if you are a public company offering securities for sale (for example, shares or debentures) then you must provide a disclosure document to potential investors.

A disclosure document is the broad term used to describe all regulated fundraising documents for the issue of securities.

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There arefour types of disclosure document:

  • a prospectus
  • an offer information statement
  • a profile statement, and
  • a two-part simple corporate bonds prospectus.

All companies entitled to fundraise can use a prospectus. You may also be able to use an offer information statement or a profile statement depending on the type of fundraising you intend to do and whether you satisfy the restrictions imposed on using those documents. You must use a two-part simple corporate bonds prospectus for offers of simple corporate bonds. The type of information you'll be required to provide in each of these disclosure documents is different in certain respects.


A prospectus is the most common type of disclosure document and has the broadest information requirements. If your prospectus offers securities listed on a prescribed financial market, it may not need to contain as much information as otherwise neededbecause much of the information will already been released to the market as part of your continuous disclosure obligations. For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254).

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Offer information statements

An offer information statement has lower disclosure requirements but can only be used for fundraising up to $10 million in aggregate -that is, including any earlier fundraising under an offer information statement. If you want to use an offer information statement you must be able to include with it a copy of an audited financial report with a balance date within the last six months. For more information, see RG 254.

Profile statements

A profile statement is a document setting out limited key information about the company and the offer. Companies can only use profile statements where ASIC has approved their use. There are currently no approved uses for profile statements.

Two-part simple corporate bonds prospectuses

Following amendments introduced by the Corporations Amendment (Simple Corporate Bonds and Other Measures) Act 2014, a specific disclosure regime applies to offers of 'simple corporate bonds', which must be offered under a two-part simple corporate bonds prospectus.

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A two-part simple corporate bonds prospectus consists of:

  • a base prospectus with a life of three years, which must include general information about the issuer that is unlikely to change over the three-year life of the document (and that may be released in advance of an actual offer of simple corporate bonds); and
  • an offer-specific prospectus for each offer, which must include details of the offer and may update information contained in the base prospectus.

For more information, see RG 254.

Related links


What information is required to be disclosed to investors? ›

The basic information package that publicly owned companies must disclose includes audited financial statements, a summary of selected financial data, and management's description of the company's business and financial condition.

What are the disclosure requirements? ›

Disclosure requirements allow media and public to examine campaign funding. These requirements allow interested parties, such as the media and the public, to examine records otherwise hidden from them. The result is closer scrutiny of facts and figures and of the relationships between political actors.

What is the legal document called that is provided to potential investors? ›

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. A prospectus is filed for offerings of stocks, bonds, and mutual funds.

What documents do investors want? ›

3. Supporting Documentation
  • Executive summary. Your executive summary is the first and most important document you will prepare for investors. ...
  • Business plan. ...
  • Financial projections. ...
  • Pitch deck. ...
  • Management team bios. ...
  • Market research. ...
  • Competitive analysis. ...
  • Customer testimonials.
Aug 15, 2022

Which of the 4 required financial statements contains the most important information for investors? ›

The income statement presents the revenues, expenses, and profits/losses generated during the reporting period. This is usually considered the most important of the financial statements, since it presents the operating results of an entity.

What are the types of disclosures? ›

Confidential Disclosure Agreements come in three types: Incoming, Outgoing, and Mutual.

What are the four types of disclosure? ›

There are four different types of self-disclosures: deliberate, unavoidable, accidental and client initiated. Following are descriptions of these types.

What are disclosure documents? ›

A disclosure document is the broad term used to describe all regulated fundraising documents for the issue of securities. There are four types of disclosure document: a prospectus. an offer information statement. a profile statement, and.

What is a disclosure checklist? ›

The Disclosure Checklist (DC) streamlines checklist preparation and review for financial-statement disclosures and builds in quality assurance processes.

What information do investors need from financial statements? ›

Financial statements are important to investors because they can provide enormous information about a company's revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.

What is the document that informs future investors about the company is the? ›

A prospectus is a formal document that is required by and filed with the SEC that provides details about an investment offering for sale to the public. This document is used to help potential investors make a more informed decision on whether or not to invest.

What types of information are used by investors? ›

The three main kinds of information that investors use are economic indicators, market indexes, and company performance.

What are 4 things that may be necessary when asking an investor for funding? ›

Emphasize why the market needs your business. Build some credibility by sharing your relevant experience. Show your projected revenue over the next few years. Detail how much money is already being invested in the company, including who the current investors are and how much more money you need to reach the next stage.

What information is most important to investors? ›

Earnings and revenue growth. If you invest in a company, the most important thing is the bottom line. You want to know how much the company earns and whether it's boosting its sales. This can tell you whether a company is on a growth trajectory or in decline, key factors that determine how much the company is worth.

What is the most important statement for investors? ›

A company's income statement is the most important financial statement to provide when applying for funding because it reveals whether your business can generate profits.

What are the four 4 main financial documents in accounting? ›

For-profit businesses use four primary types of financial statement: the balance sheet, the income statement, the statement of cash flow, and the statement of retained earnings.

What are the 3 most important financial statements? ›

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What 7 items must financial statements consist of? ›

Revenues and expenses are included in the income statement. Changes in these elements are noted in the statement of cash flows.
The main elements of financial statements are as follows:
  • Assets. ...
  • Liabilities. ...
  • Equity. ...
  • Revenue. ...
  • Expenses.
Jan 20, 2023

What are important disclosures? ›

Importance of Disclosures

Increased transparency in the corporations' operations and management makes it easier for investors to make informed decisions. It also cuts down on the possibility of manipulation or misuse of investors' funds.

What are the key items in the disclosure document? ›

The 23 Items Your Franchise Disclosure Document Must Include
  • The Franchisor and Any Parents, Predecessors and Affiliates.
  • Business Experience.
  • Litigation.
  • Bankruptcy.
  • Initial Fees.
  • Other Fees.
  • Estimated Initial Investment.
  • Restrictions on Sources of Products and Services.
Jan 15, 2016

What is a full disclosure example? ›

Examples of Full Disclosure

An example of full disclosure in the business world includes the federal requirement for companies owned publicly to submit an annual report to the SEC as a 10-K Form detailing important information regarding business operations and finances.

What are the 5 R's of disclosure? ›

Ask what it actually means to them and you may get disclosure of unused material and possibly some of the R's (Relevant, Retain, Record, Review, Respond & Reveal).

What are financial disclosure forms? ›

Financial Disclosure Reports include information about the source, type, amount, or value of the incomes of Members, officers, certain employees of the U.S. House of Representatives and related offices, and candidates for the U.S. House of Representatives.

What are the different types of disclosures in financial statements? ›

A financial statement is one specific kind of financial disclosure. There are three common types: an income statement, a balance sheet, and a statement of cash flows.

What are the two types of disclosure? ›

Types of Disclosure

Disclosures can be direct or indirect.

When can you raise funds without a disclosure document? ›

For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254). In summary, a disclosure document is not required when: an offer is a personal offer, and if: offers or invitations have been made to fewer than 20 persons in the previous 12 months, and.

What statements do investors look at? ›

The financial statements used in investment analysis are the balance sheet, the income statement, and the cash flow statement with additional analysis of a company's shareholders' equity and retained earnings.

What is the main financial information required when providing information to shareholders? ›

Management Accounting

The kind of information (financial) a publicly traded firm needs to give or display to the shareholders is a brief report concerning the business operations with basic or core financial statements such as income statement, retained earnings statement, balance sheet, & cash flow statement.

What is the document that discloses all information regarding the money raised by companies the way it was raised the returns expected ETC known as? ›

In general

A prospectus is a written document that provides all material information about an offering of securities, and is the primary sales tool of the company that issues the securities (called the issuer) and broker-dealers that market the offering for the issuer (called underwriters).

What is an investor document? ›

Investor Documents means any equity related documents which are issued by the Issuer or any Group Company, which in all respect is subordinated to the obligations of the Issuer or any of the Guarantors under these Terms and Conditions.

What are the three elements that determine the return an investor should require from an investment? ›

The components of an investor's required rate of return that will compensate her for the risk taken are:
  • The time value of money during the investment period.
  • The expected rate of inflation during the investment period.
  • The risk involved.

What information does the sources and uses of funds provide an investor? ›

A sources and uses of funds statement, often referred to as a flow of funds report, provides a mechanism for reporting how a farm's performance during an accounting period influenced and was influenced by major funding activities.

What do investors require before funding a business? ›

Background and experience in the industry.

Investors look for experienced entrepreneurs and management teams with a track record of high performance and leadership in the company's industry or in prior ventures. Most investors will research your business experience and your background in the industry.

Why do potential investors need accounting information? ›

Knowledge of accounting helps investors determine an assets' value, understand a company's financing sources, calculate profitability, and estimate risks embedded in a company's balance sheet.

Which financial statement best reveals to investors? ›

Answer and Explanation: Explanation: The balance sheet reveals to investors and creditors information about a company's indebtedness through the liabilities section. Any debt owed by the company will be listed under liabilities.

What three financial statements do investors? ›

There are three main financial statements investors should be aware of: the income statement, the balance sheet, and the cash flow statement.

What are the three 3 most important financial statements for a small business? ›

For small businesses, financial reporting always includes the balance sheet, income statement (also called the profit and loss statement) and the cash flow statement.

What types of information must be disclosed in the financial statements? ›

IAS-5 lists the items to be disclosed, including taxes, depreciation, interest income and expense, unusual charges and credits, and net profit or loss.

What are the general information required to be disclosed as per IFRS 8? ›

IFRS 8 requires an entity whose debt or equity securities are publicly traded to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the different business activities in which it engages and the different economic environments in which it operates.


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