As we wait for ASIC review to conclude, I had a quick look on ASIC to see if there are any general clues to their thinking. No real surprises, nevertheless I find it interesting ASIC explicitly state "Preparers of financial reports should particularly focus on impairment in coming 30 June 2015 financial reports".
I've bold/italiced what seems relevant to our situation.
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Thursday 2 July 2015 15-169MR Findings from 31 December 2014 financial reports
ASIC today announced the results from a review of the 31 December 2014 financial reports of 100 listed and other public interest entities.
Following a review, ASIC has made enquiries of twenty three entities on thirty six matters seeking explanations of accounting treatments.
ASIC Commissioner John Price said: ‘The largest number of our findings continue to relate to impairment of non-financial assets and inappropriate accounting treatments. Preparers of financial reports should particularly focus on impairment in coming 30 June 2015 financial reports.’
ASIC recently issued Information Sheet 203 Impairment of non-financial assets: Materials for directors (INFO 203) to assist directors and audit committees in considering whether the value of non-financial assets shown in a company’s financial report continues to be supportable.
Our risk based surveillance of the financial reports of public interest entities for reporting periods ended 30 June 2010 to 30 June 2014 has led to material changes to 4 per cent of the financial reports of public interest entities reviewed by ASIC.
The main changes related to impairment of assets, revenue recognition and expense deferral.
Enquiries made by ASIC relate to the following matters:
Matter
Number of enquiries
1
Impairment and other asset values
10
2
Off-balance sheet arrangements and business combinations
8
3
Revenue recognition
5
4
Tax accounting
5
5
Non-IFRS financial information
4
6
Treatment of expenses
3
7
Other matters
1
8
Total
36
Enquiries of individual entities will not necessarily lead to material restatements. Matters involving seven of the entities have been concluded without any changes to their financial reporting.
ASIC does not pursue immaterial disclosures that may add unnecessary clutter to financial reports
