What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2021-02-26 compared with 2020-02-28 · 33 added, 63 removed, 241 unchanged (28% of the section changed)

4 unchanged sentences

Statements of Financial Condition at December 31, 2020 and 2019

Statements of Comprehensive Income for the Year Ended December 31, 2019, the Two Months Ended December 31, 2018 and the Year Ended October 31, 2018

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares for the Year Ended December 31, 2019

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares for the Two Months Ended December 31, 2018

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares for the Year Ended October 31, 2018

Statements of Cash Flows for the Year Ended December 31, 2019, the Two Months Ended December 31, 2018 and the Year Ended October 31, 2018

Statements of Comprehensive Income for the Years Ended December 31, 2020 and 2019

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares for the Year Ended December 31, 2020

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares for the Year Ended December 31, 2019

Statements of Cash Flows for the Years Ended December 31, 2020 and 2019

Notes to Financial Statements

6 unchanged sentences

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We, Daniel Draper, Principal Executive Officer, and Kelli Gallegos, Principal Financial and Accounting Officer, Investment Pools, of the Sponsor, assessed the effectiveness of the Trust’s internal control over financial reporting as of December 31, 2019.

We, Anna Paglia, Principal Executive Officer, and Kelli Gallegos, Principal Financial and Accounting Officer, Investment Pools, of the Sponsor, assessed the effectiveness of the Trust’s internal control over financial reporting as of December 31, 2020.

In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control—Integrated Framework (2013).

1 unchanged sentence

The Trust’s independent registered public accounting firm, PricewaterhouseCoopers LLP, has audited the Trust’s internal control over financial reporting as of December 31, 2020, as stated in their report on page 16 of the Trust’s Annual Report on Form 10-K.

/S/ DANIEL DRAPER

Daniel Draper

/S/ A NNA P AGLIA

Principal Executive Officer

/S/ KELLI GALLEGOS

/S/ K ELLI G ALLEGOS

Kelli Gallegos

3 unchanged sentences

Report of Independent Registered Public Accounting Firm

To the Board of Managers and Shareholders of Invesco CurrencyShares Australian Dollar Trust

To the Board of Managers of Invesco Specialized Products, LLC (as Sponsor of Invesco CurrencyShares Australian Dollar Trust) and Shareholders of Invesco CurrencyShares Australian Dollar Trust

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying statements of financial condition of Invesco CurrencyShares Australian Dollar Trust (the “Trust”) as of December 31, 2019 and 2018, and the related statements of comprehensive income, of changes in shareholders’ equity and redeemable capital shares and of cash flows for the year ended December 31, 2019, the two months ended December 31, 2018 and for the year ended October 31, 2018, including the related notes (collectively referred to as the “financial statements”).

We have audited the accompanying statements of financial condition of Invesco CurrencyShares Australian Dollar Trust (the “Trust”) as of December 31, 2020 and 2019, and the related statements of comprehensive income, of changes in shareholders’ equity and redeemable capital shares and of cash flows for each of the two years in the period ended December 31, 2020, including the related notes (collectively referred to as the “financial statements”).

We also have audited the Trust’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2019 and 2018, and the results of its operations and its cash flows for the year ended December 31, 2019, the two months ended December 31, 2018 and for the year ended October 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Trust maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Trust’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting , included in the accompanying Report of Management on Internal Control Over Financial Reporting .

The Trust's management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting , included in the accompanying Report of Management on Internal Control O ver Financial Reporting.

Our responsibility is to express opinions on the Trust’s financial statements and on the Trust's internal control over financial reporting based on our audits.

13 unchanged sentences

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (iii) provide reasonable assurance regarding prevention or timely

detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

We determined there are no critical audit matters.

/s/PricewaterhouseCoopers LLP

6 unchanged sentences

Australian Dollar deposits, interest bearing

Australian Dollar deposits, non-interest bearing

Receivable from accrued interest

1 unchanged sentence

Accrued Sponsor’s fee

Accrued interest expense on currency deposits

Total Liabilities

1 unchanged sentence

Redeemable Capital Shares and Shareholders’ Equity

Redeemable Capital Shares, at redemption value, no par value, 41,500,000

authorized – 1,300,000 and 1,650,000 , issued and outstanding, respectively

Redeemable Capital Shares, at redemption value, no par value, 44,500,000 and

41,500,000 authorized, respectively – 2,050,000 and 1,300,000 , issued

and outstanding, respectively

Shareholders’ Equity:

4 unchanged sentences

Statements of Comprehensive Income

For the Year Ended December 31, 2019, the Two Months Ended December 31, 2018

and the Year Ended October 31, 2018

Two Months Ended

December 31, 2019

December 31, 2018

October 31, 2018

For the Years Ended December 31, 2020 and 2019

Interest Income

7 unchanged sentences

Invesco CurrencyShares ® Australian Dollar Trust

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares

For the Year Ended December 31, 2020

13 unchanged sentences

Invesco CurrencyShares ® Australian Dollar Trust

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares

For the Two Months December 31, 2018

Statement of Changes in Shareholders’ Equity and Redeemable Capital Shares

For the Year Ended December 31, 2019

Shareholders'

Capital Shares

Balance at October 31, 2018

Purchases of Shares

Redemption of Shares

Net Increase (Decrease) due to Share Transactions

Distributions

Net Comprehensive Income (Loss)

Adjustment of Redeemable Capital Shares to Redemption

Value related to Retained Earnings

Adjustment of Redeemable Capital Shares to Redemption

Balance at December 31, 2018

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

Invesco CurrencyShares ® Australian Dollar Trust

Statements of Changes in Shareholders’ Equity and Redeemable Capital Shares

For the Year Ended October 31, 2018

Shareholders'

Capital Shares

Balance at October 31, 2017

Purchases of Shares

6 unchanged sentences

Adjustment of Redeemable Capital Shares to Redemption

Balance at October 31, 2018

Balance at December 31, 2019

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

1 unchanged sentence

Statements of Cash Flows

For the Year Ended December 31, 2019, the Two Months Ended December 31, 2018

and the Year Ended October 31, 2018

Two Months Ended

December 31, 2019

December 31, 2018

October 31, 2018

For the Years Ended December 31, 2020 and 2019

Cash flows from operating activities

38 unchanged sentences

The secondary account is also used to account for interest earned, if any, on the primary deposit account, pay Trust expenses and distribute any excess interest to holders of Shares (“Shareholders”) on a monthly basis.

The accompanying audited financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

This Annual Report (the “Annual Report”) covers the years ended December 31, 2020 and 2019.

Note 3 – Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the Trust have been prepared using U.S.

The financial statements of the Trust have been prepared using accounting principles generally accepted in the United States of America (“U.S.

Accounting Estimates

21 unchanged sentences

The table below shows distributions per Share and in total for the periods presented:

Two Months Ended

December 31, 2019

December 31, 2018

October 31, 2018

Years Ended December 31,

Distributions per Share

Distributions paid

An income distribution for the month ended December 31, 2019 was paid on January 9, 2020 to holders of record as of January 3, 2020 at a rate of $ 0.00212 per Share and a total distribution of $ 2,756 .

There was no income distribution for the month ended December 31, 2020.

Routine Operational, Administrative and Other Ordinary Expenses

5 unchanged sentences

These exceptions include expenses not assumed by the Sponsor (i.e., expenses other than those identified in the preceding paragraph), expenses resulting from negative interest rates, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Trustee or the Sponsor on behalf of the Trust or action taken by the Trustee or the Sponsor to protect the Trust or the interests of Shareholders, indemnification of the Sponsor under the Depositary Trust Agreement, audit fees and legal expenses in excess of $ 100,000 per year.

The only expense of the Trust during the year ended December 31, 2019 and the year ended October 31, 2018 was the Sponsor’s fee.

The only expenses of the Trust during the two months ended December 31, 2018 were the Sponsor’s fees and interest expense.

The only expenses of the Trust during the year ended December 31, 2020 were the Sponsor’s fee and interest expense on currency deposits.

The only expense of the Trust during the year ended December 31, 2019 was the Sponsor’s fee.

Federal Income Taxes

27 unchanged sentences

For the year ended December 31, 2020, there were Australian Dollar principal deposits of 114,776,341 , Australian Dollar principal redemptions of 39,913,155 and Australian Dollar withdrawals (to pay expenses) of 529,228 , resulting in an ending Australian Dollar principal balance of 204,323,450 .

This equates to 91,376,174 USD (which includes USD redemptions payable).

For the two months ended December 31, 2018, there were Australian Dollar principal deposits of 10,000,000 and Australian Dollar principal redemptions of 15,000,000 , resulting in an ending Australian Dollar principal balance of 165,000,000 .

This equates to 157,666,229 USD.

For the year ended December 31, 2019, there were Australian Dollar principal deposits of 20,000,018 , Australian Dollar principal redemptions of 54,998,678 and Australian Dollar withdrawals (to pay expenses) of 11,848 , resulting in an ending Australian Dollar principal balance of 129,989,492 .

This equates to 91,376,174 USD (which includes USD redemptions payable).

Net interest, if any, associated with creation and redemption activity is held in an Australian Dollar-denominated non-interest-bearing account, and any balance is distributed in full as part of the monthly income distributions, if any.

19 unchanged sentences

Due to expected continuing creations and redemptions of Baskets and the two-day period for settlement of each creation or redemption, the Trust reflects Shares created as a receivable on the trade date.

Shares redeemed are reflected as a liability on the trade date.

Shares redeemed are reflected as a liability on the trade

Outstanding Shares are reflected at redemption value, which is the NAV per Share at the period end date.

14 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data