ASIC announces results from review of 31 December 2016 financial reports
On 31 May 2017 we released a post regarding ASIC’s focus areas for surveillance on 30 June 2017 financial reports.
Following on from that theme, ASIC has now announced the results from its review of 31 December 2016 financial reports. ASIC reviewed the financial reports of 90 listed and other public interest entities for the period. The results reveal a continued focus on findings relating to impairment of non-financial assets and inappropriate accounting treatments.
Following the review, ASIC made enquiries of 23 entities on 28 matters seeking explanations of accounting treatments.
In addition to impairment of non-financial assets, ASIC also raised queries regarding consolidated accounting, amortisation of intangibles, revenue recognition, tax accounting, business combinations and other matters.
With respect to the key focus areas, impairment of non-financial assets and inappropriate accounting treatment, ASIC’s findings included discrepancies with respect to:
- determining the carrying amount of cash generating units
- the reasonableness of cash flows and assumptions
- use of fair value
- impairment indicators, and
A copy of ASIC’s media release can be found here.
This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.