ASIC restatements and focus areas for 30 June 2019

The ASIC restatements and the related media releases since the December newsletter are:

Yellow Brick Road
Mustera Property Group
Prime Financial Group
Pro-Pac Packaging.

We encourage entities to review the relevant media releases for ASIC’s focus areas and restatements as referenced in this newsletter to ensure that where a topic is relevant then those charged with governance understand ASIC’s position.

Restatements – key points

Restatements

Yellow Brick Road

Write down of goodwill and other intangible assets in Lending CGU by $34m in half year ended 31 December 2018

ASIC raised concerns about:

Reasonableness and supportability of revenue growth forecasts considering performance, market conditions and industry risks.

Mustera Property Group

Reclassified its non-controlling interest in a Property Fund from equity to liability
Reduction of net assets by $7.1m
Additional disclosures on transactions with a related party.
.

Prime Financial Group

Reported liabilities have increased by $4.5m to $20.7m
ASIC – concerns about the accounting of a put option written by Prime Financial and need to recognise a liability.

Pro-Pac Packaging

Write down of goodwill in Industrial and Flexibles cash generating unit by $149m
ASIC questioned the supportability of sales growth forecasts used – based on historical performance and market conditions.

Further information on any of these restatements can be obtained from your Bentleys advisor.

ASIC focus areas

Unfortunately at the time of writing ASIC have not released their focus areas for the 30 June 2019 reporting period nor their review of 31 December 2018 financial statements in relation to AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers compliance.

We encourage our clients to monitor the ASIC website for this release and review the key messages as relevant to you.