Smith Ltd is the only manufacturer-involved in the manufacture of widgets in Australia. The company is family owned and employs more than 100 staff (full-time-equivalent) who do not own shares in the organisation. At the end of financial year 2021, it has gross operating revenue of $43 00 000 and gross assets of $22 000 000.

Required:

Is Smith Ltd required to prepare financial statements that comply with accounting standards? Justify your decision with an explanation.