ASIC reminds directors that they are responsible for the quality of financial reporting produced by their firms.
“This includes ensuring that management produces quality financial information on a timely basis. Companies must have appropriate processes, records and analysis to support information in the financial report,” according to the Australian Securities and Investments Commission (ASIC).
Regulated entities may not be adequately prepared for the new financial reporting standards.
“We are concerned that some companies may not have adequately prepared for the impact of new accounting standards that can significantly affect results reported to the market by companies, require changes to systems and processes, and affect businesses. We will monitor these areas closely and will take action where required,” ASIC Commissioner John Price said earlier this week.
Firms should ensure that their half year and full year financial reports are compliant with IFRS 9.
The regulator said that they will be reviewing ‘more than’ 85 full year reports by the end of this year.