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| Subject: "emphasis of matter" | |
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Author: previously still accumulating. 13/1/03 |
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Date Posted: 19:13:35 01/12/03 Sun Hi Rocksteady, I have posted details on "emphasis of matter" previously it relates to a prior period in the entities accounts---30/6/2001 to the 31/12/02 reported on the 11/3/02 (first half year of the previous F/Y) it was done under accountancy standard AUS 708 which is not used for liquidation purposes accountancy standard AUS 802 is used for that purpose---in the 2nd half year of the previous F/Y no qualification was needed. Essentially ERG has written everything down to zero (most things) so that there is no longer any confusion (so states the company announcement section) The A.S.I.C are investigating a number of company's including Keycorp--I can only speak for myself--I don't consider it a problem--it is something that has occurred in the past and is not relevant to the accounts as they stand at this minute.My views for what they are worth. Certainly it is not fantastic news for the A.S.I.C. to a bit of snooping it does not look like the entity is being singled out---more of a standard procedure to me run obver a number of company's Regards,--WW. -------------------- See below. -------------------- We attach the Financial Statements in relation to the year ended 30 June 2002. -------------------------------------------------- The audit report, which is unqualified, refers to the emphasis of matter. The Directors have retained the emphasis of matter in relation to the significant uncertainty in the business included in the Financial Statements for the half-year ended 31 December 2001. -------------------------------------------------- 02/460 ASIC releases stage one results of accounting surveillance Wednesday 18 December 2002 Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), today provided the stage one results of ASIC's most recent accounting surveillance project. In the last three months ASIC has reviewed the audited full-year financial reports of more than 1000 listed companies with balance dates between 30 June and 31 July, looking at three particular risk areas: ------------------------------------ capitalised and deferred expenses recognition of revenue, and recognition of controlled entities and assets. These three risk areas were seen to be significant in producing misleading financial reporting in the failures of Enron and other high profile companies in the United States. 'Our review to date confirms ASIC's belief that there is no reason to believe that the type of accounting abuses identified in the United States pose a material risk in Australia', Mr Knott said. 'During this review it was noted that there is a reasonably high incidence of auditors either qualifying company accounts or highlighting risks through "emphasis of matter" commentary relating to going concern. This suggests that there is a reasonably high level of transparency in financial reporting on this significant matter. 'While it is always possible that underlying transactions have been deliberately misrepresented in the audited accounts reviewed by us, experience suggests that this is unlikely. 'In those cases where we have continuing doubts about the reliability of financial reports, enquiries are continuing with the companies and their auditors. 'In the meantime, there is evidence that public debate on these issues, including ASIC's surveillance, has resulted in some companies adopting more conservative accounting policies in the areas reviewed. 'Overall, we believe that the level of compliance with existing accounting standards in Australia is high. However, the initiatives currently underway to upgrade accounting standards, to fill unacceptable gaps and to implement better quality control of audit are all critical enhancements to our financial reporting regime. 'When addressing capitalised and deferred expenses, ASIC notes that under Australian Accounting Standard AASB1022, companies engaged in extractive industries may capitalise exploration and evaluation costs in certain circumstances. 'Accounting for extractive industries is under review by the International Accounting Standards Board', Mr Knott said. Findings When Mr Knott announced this review in July he said that ASIC has no reason to believe that abuses such as those recently uncovered in the USA are prevalent in Australia. As ASIC expected, in relation to the overwhelming majority of companies, the review did not raise any systemic issues in the three risk areas examined. It is believed that pressure from auditors, and the fact of ASIC's review, caused the listed company sector to closely re-examine its accounting policy in these areas and saw the adoption of more conservative policies in some cases. The review identified accounts of 215 companies that had audit qualifications and/or 'emphasis of matter' paragraphs. The accounts for six companies had audit qualifications relating to their continuation as going concerns. Where appropriate, ASIC is making enquiries in relation to each of these companies. Another 160 companies had an 'emphasis of matter' in the audit report which related to significant uncertainty about going concern. An 'emphasis of matter' is required under Australian Auditing Standards to draw particular attention to matters disclosed in the notes of a financial report that are of particular importance to the company's future as a going concern. At this time, ASIC has been unable to conclude a view about some 31 companies. Inquiries are continuing and it is expected that ASIC will reach a view about these companies' accounts and whether further action will be taken against the company or its auditor in the first quarter of 2003. If, in the meantime, ASIC forms any adverse view of the reliability of these accounts, it will seek corrections and full market disclosure. ASIC is also concerned about the level of compliance by companies in relation to the timing of the publication of their audited financial reports. Some 107 listed companies with a 30 June balance date had failed to lodge their accounts 2 weeks after they were due, without obtaining an extension from ASIC. ASIC has so far made orders against 42 of these companies prohibiting them from relying on the lower content prospectus regime and is contemplating compliance action against a number of others. There are 10 companies that have not yet lodged their financial reports and they have been suspended from trading by the ASX. The principal standards involved in the review's focus are: AASB 1040 Statement of Financial Position AASB 1018 Statement of Financial Performance AASB 1004 Revenue, and AASB 1024 Consolidated Accounts. The names of those companies that have audit qualifications relating to their continuation as going concerns, an 'emphasis of matter' statement relating to significant uncertainty about their solvency, or which have failed to lodge their financial reports follow. Companies with an audit qualification relating to continuation as a going concern: Diamond Rose NL DSG Australia Limited IXLA Limited Koala Corporation Limited Sabina Corporation Limited, and Worldwide Technology Group Limited. Where appropriate, ASIC is making enquiries in relation to each of these companies. Companies with an 'emphasis of matter' in the audit report relating to significant uncertainty about solvency: Adex Holdings Limited ADV Group Limited Advantage Telecommunications Limited Alamain Investments Limited Alcaston Mining NL Alpha Technologies Corporation Limited Amalg Resources NL Ambri Limited Anaconda Nickel Limited Anglo Australian Resources NL Antisense Therapeutics Limited Aquacarotene Limited Armourglass Limited Astro Mining NL Aucxis Limited Austpac Resources NL Australian Silicon Limited Australian Visual Communications Limited Axiom Properties Limited Ballarat Goldfields NL Banque-Tec Limited Bioprospect Limited Blackrange Minerals Limited Blaze International Limited Blink Models Limited Boulder Steel Limited Bounty Oil and Gas NL Brandrill Limited Burdekin Pacific Limited Captech Group Limited Carnegie Corporation Limited CBD Online limited CCI Holdings Limited Charters Towers Gold Mines Limited Chrome Global Limited Circlecom Limited CMC Power Systems Limited Commsoft Group Limited Conquest Mining limited Cosmos Limited Datafast Telecommunications Limited Dragon Mining NL Eagle Bay Resources NL Earth Essence International Limited Eastern Corporation Limited Electrometals Technologies Limited Empire Oil & Gas NL Energy World Corporation Limited Entertainment World Limited ERG Limited Esec Limited Ezenet Limited Fashion Intimates Limited Federation Group Limited Flowcom Limited Focus Technologies Limited Fraser Range Holdings Limited General Publishers Limited Genesis Biomedical Limited Giants Reef Mining Limited Gippsland Limited Global Business Solutions Limited GoConnect Limited GPS Online Limited Gutnick Resources NL Haoma Mining NL Harrington Group Limited Health Communication Network Limited Healthpoint Technologies Limited IATIA Limited Ice Corporation Limited Integra Medical Imaging Limited IPWorld Limited Johnson's Well Mining NL Jumbo Corporation Limited Kalrez Energy Limited Keycorp Limited Kimberley Oil NL Lion Equities Limited Longreach Oil Limited Lynas Corporation Limited M2M Corporation Limited Majestic Resources NL Marlborough Resources NL Maxe-tec Australia Limited Maxis Corporation Limited Medical Monitors Limited Menzies Gold Limited Mikoh Corporation Limited Minerals Corporation Limited Monterary Group Limited Monto Minerals NL Mount Gibson Iron Limited Multimedia Limited Murchison Holdings Limited Murchison United NL Musgrave Block Holdings Limited MXL Limited National Forge Limited Nautilus Australia Limited New Holland Mining Limited Nexus Energy Limited Objectif Telecommunications Limited Oriel Communications Limited Palamedia Limited Pan Australian Resources NL Pahth Telecommunications Limited Pearl Healthcare Limited Perseverance Corporation Limited Plexus International Limited Pocketmail Group Limited Polartechnics Limited Powerlan Limited Preston Resources Limited Psiron Limited Quantum Resources Limited Quest Investments Limited Q-Vis Limited Range Resources Limited Reynolds Wines Limited Rusina Mining Limited Safe Effect Technologies Limited Scanbox Asia Pacific Limited SDS Corporation Limited Simon Gilbert Wines Limited SkynetGlobal Limited SMC Gold Limited Southern Equity Holdings Limited Stadium Australia Management Limited Startrack Communications Limited Stokes (Australasia) Limited Strathfield Group Limited Sub-Sahara Resources Limited Sylvania Resources Limited Synergy Metals Limited Syntech Group Limited Techniche Limited Techstar Limited Television & Media Services Limited Tennyson Networks Limited Terraplanet Limited Thin Technologies Limited Tiger Resources Limited Timemac Solutions Limited Tolhurst Noall Group Limited Tony Barlow Australia Limited Tooth & Co Limited Travelshop Limited Union Capital Limited Victoria Petroleum NL Virax Holdings Limited Werrie Gold Limited Westel Group Limited Western Metals Limited Willhart Limited Winepros Limited Worldaudio Limited Xenolith Gold Limited Zeolite Australia Limited, and Zicom Australia Limited. Companies that have failed to lodge financial reports Media Corporation Australia Limited Advanced Engine Components Limited New Tel Limited (placed into external administration on 10 December 2002) Precious Metals Australia Limited Supersorb Environmental NL Tuart Resources Limited 3D Global Limited E-com Multi Limited Intercard Wireless Limited, and Weboz Limited. Updated: 19/12/2002 ance [ Next Thread | Previous Thread | Next Message | Previous Message ] |