ASIC wants reports to reflect reality

The Australian Securities and Investments Commission (ASIC) has indicated that companies must properly disclose their business activities to give a true reflection of the economy in their next financial report. The regulator will specifically target poor disclosure and questionable asset values, and scrutinise methods of valuing assets.

Fluctuations in the current market have prompted ASIC to focus on changes to asset values. In a review of the last round of report submissions on June 30, intangible asset values dropped less than one percent of the asset’s total value. The commission expects the drop will be greater in the next round.
 
“In light of ongoing volatility in global financial markets, ASIC will continue to conduct regular reviews of financial reports and publicise … its findings,” says Tony D'Aloisio, ASIC chairman.