Results from ASIC’s surveillance of 31 December 2021 financial reports

Every six months, the Australian Securities and Investments Commission (ASIC) publishes an anonymised summary, via a Media Release, of areas where it has made inquiries to companies (particularly listed entities) regarding the appropriate accounting treatment in their financial reports.

ASIC’s Media Release highlights that for 31 December 2021, it reviewed financial reports of 70 listed entities, which resulted in inquiries to 18 entities regarding 31 matters. Most of the matters subject to inquiry related to entities not providing enough disclosure about:

  • Their business strategies and risks in the Operating and Financial Review (OFR)
  • Uncertainties and key assumptions used in their impairment calculations.

Inquiries of three entities concluded with no change to financial reporting and inquiries of the remaining 15 entities were not resolved at the date of the Media Release.

Approximately two thirds of ASIC’s reviews comprised entities operating in the mining, property, and consumer finance industries. This was in line with ASIC’s key focus areas being asset values and provisions.

ASIC’s inquiries

Below is a summary of inquiries made by ASIC on companies’ 31 December 2021 financial reports.


Number of inquiries

Focus areas of inquiries



  • Adequacy of disclosure about material business risks that may affect the listed entity achieving its strategies and prospects.

Impairment and asset values (including goodwill, other intangibles, and property, plant and equipment)


  • Reasonableness of cash flows and assumptions, having regard to whether they are supportable based on historical trading results and ongoing changes in market conditions.
  • Use of fair value to determine recoverable amount, including:
    • Discounted cash flow approaches appear to be largely dependent on management’s inputs.
    • Entity uses its market capitalisation as an estimate of fair value.

Watch our recent webinar for Practical tips on impairment testing.



  • Adequacy of restoration provisions and related disclosures.

Revenue recognition


  • Appropriateness of revenue recognition, including whether a licence arrangement has multiple performance obligations that may impact the timing of revenue recognition.

Non-IFRS profits


  • Disclosure of a non-IFRS profit measure as a subtotal in the income statement (inquiry is ongoing).
  • Disclosure of specific items removed from statutory profit to support the reported non-IFRS profit measures.

Going concern


  • Adequacy of disclosure about material uncertainties relating to the entity’s ability to continue as a going concern.



  • Treatment and disclosure about a property lease.
  • Treatment of a lease that has been terminated early.

Note: Both these inquiries were resolved with no changes required to financial reporting.

Other matters






Need assistance?

Please contact our IFRS Advisory team if you need support with any financial reporting matters for your 30 June 2022 financial reports.