PG Ltd is a public company listed on the Australian Stock Exchange and is therefore a reporting entity under the Corporations Act with an annual turnover of $3.2 million. You have been an employee of PG Ltd since 2014 as an Assistant Finance Officer. PG Ltd offered you financial support to advance your accounting career through the Institute of Certified Bookkeepers Association. In January 2020, the organisation promoted you to the position of Senior Finance Officer.

To fund some of its growth, the board of directors of PG Ltd approved a loan application for $2.5 million through the Commonwealth Bank. The bank required that PG Ltd provide a set of audited financial statements for the year ended 30 June 2021. 

In preparing the year end reports for 2021, the Accountant instructed you to post a general journal entry to record a sale for $450,000 to one of the major customers. You questioned the accountant as to why this transaction was processed as a general journal instead of a normal sales invoice transaction. You also requested authorised supporting documentation for the transaction. The Accountant directed you to record the transaction as required by the Chief Financial Controller. No documentation was ever received.

The independent financial audit was conducted and the auditors did not question this transaction in the financial statements. Reports were then filed with the ASIC and the loan application was approved. Bonuses were paid to the executive managers (Chief Financial Controller and the Chief Executive Officer).

In reviewing the financial statements for the year ended 30 June 2022 you discover that the general journal entry for $450,000 has been reversed on 1 July 2021. The financial reports have been submitted to the ASIC. You believe that this was a material error in the 2021 financial statements and should have been reported in accordance with ASB108. Paragraph 42 of AASB108 requires the prior year comparative figured to be amended on the 2022 financial statements and paragraph 49 requires the nature of the error to be disclosed. 

It is PG Ltd's internal control policy that all recorded financial transactions are supported by appropriate source documentation and are authorised in writing in accordance with the financial delegations in the organisational chart.

1. What are the legislative, regulatory and industry requirements that must be met with in relation to financial reporting for this company for the year ended 30 June 2022? You need to cover the requirements for the current year reports and the requirements in relation to the prior year error.