LPI (Australia) Holdings Pty Limited (LPI Australia) has lodged its financial report for the year ended 31 December 2023 with restated FY22 comparative figures. This follows a review by ASIC as part of its proactive surveillance program to improve financial reporting quality.
LPI Australia is a large proprietary company, which is required to prepare and lodge an audited financial report with ASIC.
When LPI Australia lodged its 31 December 2022 financial report, it failed to consolidate Jones Lang LaSalle (Taiwan) Limited, an entity in which LPI Australia has a 100% holding. This meant that the financial report did not include consolidated assets of $57 million, liabilities of $25 million, revenue (including reimbursements) of $100 million and expenses of $96 million, which resulted in users of the report not having all the relevant information about the entity’s true financial position.
ASIC raised concerns with LPI Australia that it had failed to comply with the requirements of AASB 10 Consolidated Financial Statements. As a result, LPI Australia agreed to restate its 31 December 2022 comparatives with the lodgement of its 31 December 2023 financial report.
ASIC expects preparers of financial reports to give consideration to assessing control of related entities and the consolidation requirements of the Australian Accounting Standards.
Background
ASIC’s aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law, supporting investor confidence and the integrity of Australia’s capital markets.
ASIC conducts regular reviews on a risk-basis of the financial reports of selected companies and other public interest entities, to monitor compliance with the Corporations Act 2001 and Australian Accounting Standards.
ASIC’s recent media release .
