ASIC has again highlighted asset values and accounting policy choices as key matters. In particular, the use of unrealistic assumptions in testing asset values and the application of inappropriate approaches to revenue recognition.
The key focus areas announced by ASIC in the release are:
- impairment testing and asset values
- revenue recognition
- expense deferral
- off-balance sheet arrangements
- tax accounting, and
- disclosures regarding:
- estimates and accounting policy judgements, and
- the impact of new revenue, financial instrument lease and insurance accounting standards.
A copy of ASIC’s media release can be found here.