ob体育 is urging directors, preparers of financial reports and auditors to be aware of the enduring and ongoing focus areas in its proactive surveillance of financial reports for the year ending 31 December 2024.
ob体育 Commissioner Kate O鈥橰ourke said, 鈥榃e have highlighted matters that require the most judgement and use of estimates as these areas have previously shown the highest rates of non-compliance.鈥�
Areas of focus for the upcoming reporting season include:
- impairment and asset values
- provisions
- events after year end and before completing the financial report, and
- disclosures in the financial report and Operating and Financial Review (OFR).
鈥榃hile these areas are emphasised, ob体育 expects all reporting entities to ensure the reports are complete, accurate and informative,鈥� Ms O鈥橰ourke said.
Commissioner O鈥橰ourke said ob体育 would also target non-compliance with financial reporting obligations more broadly.
鈥榦b体育 is aware that some formerly grandfathered large proprietary companies may not be lodging financial reports, despite being required to do so since years ending 31 December 2022 or 30 June 2023. We will be contacting a number of these entities and, in certain circumstances, may take action against companies for failing to comply with their reporting obligations.鈥�
This will also be the first financial year for December year-end reporters to prepare and lodge a consolidated entity disclosure statement. ob体育 will be monitoring for compliance with this requirement. We will also review the financial reports of registrable superannuation entities with December year ends.
For some entities, new sustainability and climate reporting requirements will commence for financial years beginning on or after 1 January 2025.
While the first cohort of reporters will be the very largest entities that report under Chapter 2M of the Corporations Act 2001, all entities subject to the sustainability reporting requirements should understand how the new requirements apply to them.
ob体育鈥檚 surveillance project focusing on auditors鈥� compliance with independence and conflicts of interest obligations will continue in early 2025. We encourage auditors to self-identify and self-report non-compliance with these obligations.
Further detail is available on ob体育鈥檚 financial reporting and audit focus areas page.
Background
ob体育鈥檚 surveillance program reviews the financial reports of a sample of publicly listed companies and other economically significant public interest entities such as large proprietary companies.
In October 2024, ob体育 released Report 799 ob体育鈥檚 oversight of financial reporting and audit 2023鈥�24 (REP 799) which summarises findings from our financial reporting and audit surveillances and other complementary work for the period 1 July 2023 to 30 June 2024. It highlights areas where the quality of financial reporting and audits can be improved.