COVID -information. ASIC and APRA have also published a joint letter to trustees. Member communication must be crystal clear, says ASIC. We have outlined the steps we will take to reduce regulatory burden for the industry, and will provide updated information regularly.
Lenders must also do all things necessary to ensure that the credit activities authorised by their licence are engaged in efficiently, honestly and fairly. This issue is most immediately relevant for listed and unlisted public companies with December balance dates that are required to hold an AGM by For these entities, ASIC: 1. Supports the holding of AGMs using appropriate technology. The full text of our ‘no action’ position is attached.
ASIC cautions entities against holding an AGM while there are restrictions on large gatherings, unless the entity can provide members as a whole with a reasonable opportunity to participate in the meeting. Commissioner John Price said a degree of flexible pragmatism was needed to deal with the issue. Consistent with the Council of Financial Regulators’ statementthat they would move to adjust the timing of regulatory initiatives so financial institutions could concentrat.
See full list on asic. ASIC is closely monitoring developments that may affect financial reporting, talking to market participants and auditors, and considering possible impacts and responses. ASIC does not have the power to grant extensions of time to hold an AGM on a ‘class basis’, i. We have therefore provided a ‘no-action’ position on upcoming AGMs that need to be deferred or that are held online.
The health and well-being of our entire community is our top priority and in these challenging times, we stand together. Recognition and measurement 2. What are some of the factors to consider for assets, liabilities and going concern assessments? Factors to consider in relation to asset values, liabilities and assessments on solvency and going concern may include: 1. What disclosures should be made in the financial report?
In some cases, uncertainties may lead to a relatively broad range of reasonable and valid assumptions as to future performance and cash flows for an entity’s businesses or assets. Directors should have a reasonable basis for each significant estimate in the financial report and any assessment on whether the entity is a going concern. Key assumptions should. Does the temporary relief for directors where a company trades while insolvent affect requirements for financial reports, directors’ declarations and directors’ reports?
The requirements to provide a solvency statement in the directors’ declaration and assess whether an entity is a going concern remain in place. Transparency on the financial condition of entities and on solvency and going concern are important to the confidence of users of financial reports and their ability to make informed decisions. Speculation in the absence of full disclosure can also be more damaging to an entity than having full and frank disclosure.
Can directors give a qualified solvency statement? Assessments of solvency and going concern are distinct tests that have regard to their own specific criteria: 1. Is an auditor required to report suspected insolvent trading to ASIC ? Temporary relief is available for six months from director personal liability for incurring debts where a company is or will be insolvent in certain circumstances (see Question above). Are extended reporting deadlines available for listed and unlisted entities? Where possible, entities shoul. Can entities seek more than one additional month to complete their financial reporting obligation?
Timely reporting by entities is important and we envisage that the additional one month to lodge reports will be sufficient for the vast majority of those entities that may require more time. However, ASIC will consider applications to extend the reporting deadline for individual entities in appropriate circumstances. Has the period for holding an AGM been extended and can I hold the AGM electronically? ASIC will not take action if an AGM is held up to seven months after year end. The Treasurer has issued a determination amending the Corporations.
There may need to be increased numbers of emphasis of matter paragraphs (EOMs) in audit reports, material uncertainty related to going concern (MURGC) paragraphs, and modified audit opinions (qualifie adverse and disclaimers of opinion). Auditors should also be mindful that any inappropriate overuse of EOMs may diminish the value of EOMs and the ability of users to focus on the required EOMs. EOMs draw attention to information in a financial report fundamental to users’ understanding of the. Should an auditor delay their opinion until a limitation or uncertainty is resolved? An auditor must complete all necessary audit work that it is possible to undertake to support their opinion before issuing the audit report, even if reporting deadlines (including extended reporting deadlines) will not be met.
However, an auditor should not delay their audit report where information needed for the financial report or supporting the audit opinion will not be available to the auditor for a period and the matter is outside the control of both the auditor and the audited entity,. Should audit fees be reduced when reviewing other cost saving initiatives? A company is required to pay the auditor’s reasonable fees and expenses (section 3of the Corporations Act). The setting of audit fees is a commercial decision by companies and their auditors.
The overall audit fee setting process should be managed by the directors and the audit committee to ensure that fees are not set at a level that could lead to audit quality being compromised. When companies are under financial pressure, audit fees can be affected in the pursuit of general cost reducti. ASIC’s financial reporting surveillance and audit inspection activities are continuing given their importance to confident and informed markets and investors through quality financial reports supported by quality audits. Consultation on possible routine reporting of audit inspection findings to audit committees and some parts of our reviews on culture and talent at the largest audit firms have been deferred. Offer valid for current registrants in the ASICS Medical Professionals, First Responders, Military personnel, and Students.
Puerto Rico residents only. Registrant will receive a discount code valid on qualifying and available full-price products only (not valid for mark-downs) purchased only on ASICS. ASIC asks banks and lenders to work with their customers in the lead-up to September. ASIC taskforces are targeting false and misleading advertising, scams, and the appropriateness of financial advice. We find ourselves in an unprecedented situation, but we can take solace in the fact that we are all in this together – and it is together that we will make it through.
At ASICS, we’re doing what we can to combat the spread of the Coronavirus.