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ASIC extends relief for stapled securities

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By Reporter
  •  
2 minute read

ASIC has extended class order relief that allows issuers of stapled securities to present consolidated or combined financial statements.

Stapled securities are investments with two or more securities contractually bound together so that they cannot be traded separately. 

The corporate regulator believes the amended class order (CO 13/1050) will clarify that consolidated or combined reporting by entities issuing stapled securities can continue under the new accounting standard on consolidation accounting. 

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According to ASIC, consolidated financial statements provide useful and meaningful information regarding investor interest in the overall stapled arrangement and may be important in generating a “true and fair view of the individual entity financial reports”.

Combined financial statements also eliminate the need to list transactions between the different entities. 

Under the class order, entities will be required to disclose that the class order has been relied upon and if consolidated financial statements have been presented. 

Entities will also need to disclose the amounts of non-controlling interests that are attributable to the stapled security holders. 

ASIC has extended the class order on the basis that consolidated financial statements by stapled entities will likely be considered by the International Financial Reporting Standards Interpretations Committee in 2014. 

ASIC’s position on consolidated statements by stapled entities may change in the future once the matter is resolved by the committee.   

ASIC extends relief for stapled securities

ASIC has extended class order relief that allows issuers of stapled securities to present consolidated or combined financial statements.

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