The Australian Securities and Investment Commission
(ASIC) has announced the areas it will be focusing
on for 30 June 2014 financial reports.
ASIC have stated that their surveillance will focus on material
disclosures of information which is useful to investors and others
who rely on these financial reports, such as key assumptions
supporting accounting estimates.
In this Alert, Partner Michelle Eastwell and Trainee Solicitor
Kaitlyn Rafter outline the three main areas of ASIC's focus and
how your company can address them.
- Focus on Impairment
-
ASIC will be looking closely at impairment calculations in
financial reports, so companies need to carefully consider the need
to impair goodwill and other assets and the basis for determining
impairment. This is as a result of ASIC's concerns that they
continue to find unrealistic cash flows, forecasts and assumptions
being used when companies are determining whether and to what
extent assets are impaired.
