In July, ASIC released its areas of focus for 30 June 2013 financial reports. Their areas of focus are based on the findings of the review they conducted at 31 December 2012. This target audience of this document includes directors, preparers of financial statements and auditors. So if you fall into one of these categories, you may like to read on.
The key areas that ASIC plan to focus on during their review of 30 June 2013 financial reports include:
- Disclosure in the Operating and Financial Review (OFR)
- Off-balance sheet arrangements and new standards
- Asset values and impairment testing
- Going concern
- Revenue recognition and expense deferral
- Financial instrument values
- Estimates and accounting policy judgements
- Non-IFRS financial information
- Related party disclosures
- Amortisation of intangible assets
These topics may seem like they only apply to big business, but items such as Going Concern and Revenue Recognition apply to all audits, including your local bowls club and RSL.
In their report they note a number of changes to accounting standards applicable from 1 January 2013 – so industry experts are suggesting now might be a good time to review these standards to determine if they will have an impact on comparatives in future financial years.
For more information, view 13-160MR Focuses for 30 June 2013 financial reports.