ASIC announces financial reports findings
Findings from the Australian Securities and Investments Commission (ASIC) June review of financial reports show the impairment of non-financial assets and inappropriate accounting treatments is the most common concern.
The regulator made enquiries of 50 entities on 54 matters seeking explanations of accounting treatments after ASIC commission John Price confirmed a majority of findings from its review of 220 entities had questions on this.
“Directors and auditors should continue to focus on values of assets and accounting policy choices in preparing their 31 December 2017 financial reports,” he said.
“The largest number of our findings continue to relate to impairment of non-financial assets and inappropriate accounting treatments.”
The regulator confirmed matters which involved 18 of the entities have been concluded without changes to their reporting procedures.
Inquiries made by ASIC from the review related to the following matters:
| Concern | Number of inquiries |
| Impairment and other asset values | 20 |
| Revenue recognition | 8 |
| Tax accounting | 8 |
| Expense deferral | 4 |
| Business combinations | 3 |
| Consolidation accounting | 2 |
| Operating segments | 2 |
| Other | 7 |
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