30 June 2017 Findings

ASIC has announced it’s findings from its review of the 30 June 2017 financial reports of 220 listed and other public interest entities.

The largest number of findings continue to relate to impairment of non-financial assets and inappropriate accounting treatments.

ASIC issued Information Sheet 203 Impairment of non-financial assets: Materials for directors (INFO 203) in June 2015 to assist directors in considering whether the value of non-financial assets shown in a company’s financial report continues to be supportable.

Findings from the review of 30 June 2017 financial reports included:

1. Asset values and impairment testing
2. Revenue recognition
3. Tax accounting
4. Expense deferral
5. Consolidation accounting
6. Business combinations
7. Estimates and accounting policy judgements

Refer to 17-437MR for further details.

31 December 2017 Focus Areas

ASIC has called on companies to focus on giving information for users of financial reports that is useful and meaningful, and to address the impact of major new accounting requirements.

Focus areas include:

1. Impairment testing and asset values
2. Revenue recognition
3. Expense deferral
4. Off-balance sheet arranagements
5. Tax accounting
6. Estimates and accounting policy judgements
7. Impact of new revenue, financial instrument, lease and insurance standards

Refer to 17-423MR for further details.