On 12 December 2011, the Australian Securities and Investments Commission (ASIC) published guidance (Regulatory Guide 230) on the use of financial information prepared other than in accordance with accounting standards; that is, non-International Financial Reporting Standards (IFRS) financial information. The guidance aims to assist directors and preparers of financial information in understanding how and when it is appropriate to use non-IFRS financial information in financial reports, transaction documents and other documents. The guidance covers:
- presenting non-IFRS financial information to reduce the possibility of it being misleading;
- determining whether greater prominence has been given to non-IFRS financial information over IFRS information;
- examples of potentially misleading disclosures;
- interpretation of the Corporations Act 2001 and relevant accounting standards; and
- presentation of pro forma financial information in transaction documents.
A Regulation Impact Statement was prepared by ASIC and was assessed as adequate by the Office of Best Practice Regulation.