ASIC targets annual reports hits familiar inquiries and recommendations

Key Points:

Its review of 30 June 2014 financial reports sees ASIC cover familiar ground, but with a greater emphasis on asset values and impairment testing.

ASIC has released its findings from a review of 30 June 2014 financial reports for 300 listed and other public interest entities. Seventy-three inquiries were raised, with the most recorded inquiries relating to impairment and asset values. The findings are a timely reminder for business. ASIC Commissioner John Price states:

"The largest number of our inquiries and findings continue to relate to inadequate asset impairment and inappropriate accounting treatments. Preparers of financial reports should focus on these areas and ensure that they provide high quality, useful and meaningful information to investors and others."