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Australia calls for disclosure on impact on assets

Tan KW
Publish date: Wed, 07 Jun 2023, 10:52 AM
Tan KW
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SYDNEY: The Australian corporate regulator says that it has urged companies to make full disclosures of the impact of Covid-19 and rising interest rates on asset valuations in their upcoming full-year and half-year results.

The Australian Securities and Investments Commission (ASIC) said in a statement that directors should ensure that investors are duly informed of the impact of changing and uncertain economic and market conditions on their financial position and future performance.

“Impacts on asset values and provisions should be assessed, and uncertainties, key assumptions, business strategies, and risks should be disclosed,” its commissioner Danielle Press said.

The ASIC asked to take certain conditions into consideration, including Covid-19 and restrictions during the trading period, the impact of rising interest rates and inflationary impacts, among others, on property valuations, while preparing financial reports for the upcoming earnings season.

Australia has borne the brunt of higher interest rates ever since the country’s central bank started raising its key policy rates in May 2022, which have in turn pushed commercial rents higher, making fewer retail businesses less viable.

 - Reuters

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