Companies and auditors should focus
on the appropriateness of going concern assumptions, asset
impairments, fair value determinations and revised accounting
standards when preparing and auditing 31 December 2009 financial
reports, the Australian Securities and Investments Commission
(ASIC) said.

The warning follows ASIC’s review of the 30
June 2009 financial reports of 350 listed and unlisted entities.
ASIC commissioner Michael Dwyer said the review highlighted a
number of areas where companies and their auditors needed to pay
greater attention.

“Despite signs of improvement in the
Australian economy, we encourage companies and their auditors to
continue to focus on issues such as going concern, asset impairment
and fair value determination,” he said.

ASIC’s review of the 31 December 2009
financial reports will include a focus on compliance with revised
accounting standards.