Short Answer Question 1 - Regulatory Framework

(Answer length - approximately 100 words)

Walker Resort Pty Ltd is a proprietary company that operates holiday resorts in Central Coast. It has 49 shareholders and 90 employees. According to internal accounting records, Walker Resort Pty Ltd has total assets of $21 million and total liabilities of $2 million. Its revenue for the current year was $65 million. Neither ASIC nor shareholders have made a direction for the preparation of a financial report.

Required:

Is Walker Resort Pty Ltd required to prepare a financial report? Give reasons to support your answer. (4 marks)