The topic of the enquiries are consistent with the ASIC focus areas for financial reporting for recognition and measurement.
ASIC focus areas
- Impairment testing and other asset values
- Revenue recognition
- Tax accounting
- Expense deferral
- Business combinations
- Consolidation accounting (off-balance sheet arrangements).
- Operating Segments.
In addition, ASIC have encouraged entities to improve their disclosures in relation to estimates and accounting policy judgements as well as the impact of the new revenue, financial instrument, lease and insurance standards.
Since May 2017, the following entities have seen changes to their financial statements as a result of ASIC enquiries, the total profit adjustments were more than $750m.
The following entities have made changes to their financial statements following ASIC enquiries.