ASIC has released its areas of focus for 31 December 2022 reporting. ASIC remains focused on the continuing impacts of uncertainties, risks and evolving market conditions.  ASIC urges greater focus on material, entity specific business risk disclosures in the Operating and Financial Review (OFR).

ASIC encourages listed entities to consider adopting recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) as their primary framework for voluntary climate change-related disclosures.  Such disclosures may be included in the OFR as they relate to material business risks.

Uncertainties and changing market conditions

ASIC included a non-exhaustive list of factors to be considered in the circumstances of individual entities:

Government & geopolitical

  • Evolving COVID-19 restrictions
  • Commitments and policies on climate and carbon emission
  • Impact of climate change
  • Discontinuation of financial support
  • Russia / Ukraine conflict
  • Legislative/regulatory changes

Financial & commodity prices

  • Impact of rising interest rate on future cashflow and discount rates used in the valuation of assets and liabilities
  • Increases in energy and oil prices
  • Inflationary impacts

Market & customers

  • Shortage of skilled staff
  • Use of virtual meetings
  • Flexible working arrangements


  • Customer preferences and purchasing trends
  • Technological changes and development

Uncertainties and market conditions may change from period to period and will impact companies differently.  They may lead to a wide range of valid judgements on asset values and other accounting estimates. Directors should ensure that the circumstances in which judgements and forward looking information have been made, and the underlying assumptions and rationale for those judgements, are properly considered, documented and appropriately disclosed due to their value and importance to investors.

ASIC has also highlighted the importance of the Operating and Financial Review (OFR) in complementing the financial report to tell users how the entity’s business has been impacted by both COVID-19 and non-COVID-19 factors. The OFR should explain the underlying drivers of the results and financial position, as well as the material business risks that may affect achievement of the entity’s strategies and future prospects.

Focus areas for 31 December 2022

The areas of focus identified by ASIC are broad, with the five major themes being:

  • Asset values
  • Provisions
  • Solvency and going concern assessments
  • Events occurring after the reporting date
  • Disclosures (in the financial report and the OFR)

Read further discussion on each of these areas, including guidance for preparers to consider in addressing the focus areas, in our Reporting Update.

Download Reporting Update

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