Financial reporting 2022: Regulatory activity
ASIC
Restatements
The restatements to entities financial statements arising from ASIC queries over the previous 6 months relate to two topics, being impairment and provisions. The media release references are included below, and are a useful resource to understand the areas where the corporate regulator is finding incorrect accounting or inappropriate assumptions in financial reporting. Additional information can be found in the relevant media release.
| IMPAIRMENT | PROVISIONS |
|---|---|
| - Collection House (22-037) – deferred tax assets - Buddy Technologies (22-047) – intangibles - Oliver’s Real Food (22-053) – undo impairment reversal on stores | - Woodside Petroleum (22-027) - rehabilitation |
Australian Financial Services Licence (AFSL) holders update
The ASIC guidance in relation to preparation of financial statements by AFSL entities is expected to be released imminently. We understand that this will use the concept of public accountability as well as other specific ASIC criteria to determine whether AFSL’s have to prepare Tier 1 or Tier 2 general purpose financial statements.
There are indications that there may be transitional relief to allow AFSL’s which are required only to prepare financial statements in accordance with Chapter 7 of the Corporations Act 2001 (and not chapter 2M) to continue to prepare special purpose financial statements which comply with all recognition and measurement for an additional year. However, at the time of writing ASIC have not released any guidance confirming this.
ACNC
In addition to the ACNC raising the revenue thresholds for 30 June 2022 (as discussed in our December 2021 article), they have released guidance relating to the requirement for large charities preparing special purpose financial statements to disclose key management personnel remuneration (KMP) in their annual financial statement from 30 June 2022.
Contact your local Bentleys audit and assurance expert for assistance with your financial reporting.
For resources to assist with your year-end tax planning, visit our EOFY portal.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.