Following on from that theme, ASIC has now announced the results from its review of 31 December 2016 financial reports. ASIC reviewed the financial reports of 90 listed and other public interest entities for the period. The results reveal a continued focus on findings relating to impairment of non-financial assets and inappropriate accounting treatments.
Following the review, ASIC made enquiries of 23 entities on 28 matters seeking explanations of accounting treatments.
In addition to impairment of non-financial assets, ASIC also raised queries regarding consolidated accounting, amortisation of intangibles, revenue recognition, tax accounting, business combinations and other matters.
With respect to the key focus areas, impairment of non-financial assets and inappropriate accounting treatment, ASIC’s findings included discrepancies with respect to:
- determining the carrying amount of cash generating units
- the reasonableness of cash flows and assumptions
- use of fair value
- impairment indicators, and
A copy of ASIC’s media release can be found here.