ASIC Update December 2019

ASIC restatements

Since the last edition, there have been a number of ASIC inspired restatements following their reviews of financial statements, we encourage readers to review the relevant media releases or speak to your Bentleys contact if you require further information.

Restatements relating to impairment

19-237 Pental

19-251 PS&C Ltd

19-256 Range International Ltd

  • Write down the Country Life brand name by $1.38m.
  • ASIC questioned the supportability of earnings growth and capital expenditure forecasts used in testing brand names for impairment based on historical performance and market conditions.
  • Goodwill impaired by $50
  • ASIC questioned the reasonableness and supportability of free cash flow forecasts used in goodwill impairment testing
  • Impaired non-current assets by US$5.4m
  • Questioned the reasonableness and supportability of free cash flow projections, revenue, gross margins and EBITDA used in its impairment testing.



19-257 Tempo Australia Limited

19-268 Wollongong Coal

19-269 THC Global

19-283 West Wits Mining

The following write downs for half year 30 June 2019:

  • Goodwill $9.23m
  • DTA $5.32m
  • Intangible assets $0.47m
  • ASIC questioned the supportability of earnings growth and gross margins – losses in 2017 and 2018 and market conditions.
  • Write down the value of major assets relating to 2 mines by $431m
  • ASIC concerns with company’s estimate of the fair value of the mines
  • ASIC restricted company from issuing any reduced content prospectus.
  • Impair goodwill and intangible assets by $1.95m
  • ASIC enquired about the impairment assessment of non-current assets.


  • Write down total capital exploration and evaluation expenditure of $9.63m for an Indonesian project
  • ASIC concerned since no regulatory certification for the project since 2014
  • Joint arrangement now accounted for and disclosure for agreement with other company to mine and rehabilitate a tenement.

Restatements relating to non-impairment issues

19221 InvoCare

19-263 iSignthis

19-270 Generation Development Group

Recognise a deferred tax asset of $16.6m in relation to revenue stream for cemetery and crematorium memorial products in transition to AASB 15. Decreased the funds held on behalf of merchants classified as current assets and liabilities by $6.3m to $2.3m at 30 June 2018.
  • Subsidiary assets, liabilities, revenue and expenses now shown on line by line basis
  • Previously three lines which aggregated all policyholders assets, liabilities and profits
  • Investments disclosures changed to reference to observable inputs rather than quoted prices.

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

ASIC focus areas

The focus areas for December 2019 have not yet been released, however we do not anticipate a significant change from the June 2019 list which was as follows:

  1. Impact of the new accounting standards
  2. Impairment testing and asset values
  3. Revenue recognition
  4. Expense deferral
  5. Off balance sheet arrangements
  6. Tax accounting
  7. Operating and financial review
  8. Non-IFRS financial information
  9. Estimates and accounting policy judgements

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

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