In a recent media release on 6th June, ASIC have outlined the focus areas for 30 June 2023 reporting. Amongst the six key areas of focus are Asset Values.
ASIC has urged directors, preparers of financial reports and auditors to assess the impact of uncertain market and economic conditions on reporting for full and half-years ending 30 June 2023.
ASIC Commissioner Danielle Press said, ‘Directors should ensure that investors are properly informed on the impact of changing and uncertain economic and market conditions, ‘net zero’ targets and other developments on financial position and future performance. Impacts on asset values and provisions should be assessed, and uncertainties, key assumptions, business strategies and risks disclosed.’
ASIC has highlighted a number of areas for attention, in particular:
- asset values
- solvency and going concern assessments
- events occurring after year end and before completing the financial report
- disclosures in the financial report and Operating and Financial Review (OFR)
- the impact of a new accounting standard for insurers.
There is no hiding from the international and local market volatilities over recent years and rapidly changing environment for costs of labour and materials, access to skilled staff, supply chain disruptions and significant government stimulus in the wake of Covid-19. Before even considering ASIC’s focal areas, given the significant volatilities and changes in the markets, it is critical that owners and custodians of asset bases, whether private or public, for-profit or not-for-profit, have up to date valuations of their assets.
Meeting statutory obligations under financial reporting should be considered in tandem with capturing the changes to insurance values of your assets, ensuring your portfolio is covered adequately in an insurable event.
Acumentis are very proud to have assisted many large client organisations over recent years with fully compliant and robust asset valuations for financial reporting and insurance purposes. From providing wider advisory services as auditor appointed experts, to providing multi-billion dollar valuations, our team of experts are ready to assist your organisational needs.
Reach out to me if you would like to find out more.