Ahead of the end of the year, the Australian Securities and Investments Commission (ASIC) said its areas of focus include impairment and asset value, provisions, events occurring after the year-end but before the completion of the financial report, and disclosures in the financial report and Operating and Financial Review (OFR).
Commissioner Kate O’Rourke emphasised that the corporate regulator expects all reporting entities to ensure their reports are “complete, accurate and informative”.
As part of its proactive surveillance of financial reports, ASIC also announced it would target non-compliance with financial reporting obligations more broadly and stated it would contact and may take action against “some formerly grandfathered large proprietary companies” that are not lodging their reports, despite being required to since years ending 31 December 2022 or 30 June 2023.
The regulator noted that for December 2024 year-end reporters, this will be the first financial year in which companies must lodge consolidated entity disclosure statements, adding it would also review the financial reports of registrable superannuation entities with December year-end.
“For some entities, new sustainability and climate reporting requirements will commence for financial years beginning on or after 1 January 2025,” it said.
“While the first cohort of reporters will be the very largest entities that report under Chapter 2M of the Corporations Act 2001, all entities subject to the sustainability reporting requirements should understand how the new requirements apply to them.”
ASIC’s surveillance program reviews the financial reports of a sample of publicly listed companies and other economically significant public interest entities such as large proprietary companies.
Earlier this year, ASIC released Report 799 ASIC’s oversight of financial reporting and audit 2023–24 summarising its findings from financial reporting and audit surveillances and other complementary work between 1 July 2023 and 30 June 2024, highlighting areas where audits and financial reporting could be improved.
