AICD welcomes ASIC’s financial reporting extension

The Australian Institute of Company Directors (AICD) has welcomed the Australian Securities and Investments Commission’s (ASIC’s) announcement to extend financial reporting deadlines by one month and continue its policy of taking no action when AGMs are postponed because of COVID-19.

The move recognises the significant concerns raised by the AICD with ASIC about the uncertainty created by the COVID-19 crisis.

AICD CEO and Managing Director, Angus Armour, said, “The financial reporting extension will give directors and boards the breathing space to work through the complex reporting issues posed by COVID-19.”

It will apply to all entities with balance dates up to and including 7 July 2020 and extends blanket relief for the first time to listed companies.

The AICD first called on ASIC to extend financial reporting deadlines for all Australian companies as the challenges faced by companies during the COVID-19 pandemic became more apparent. Regulators in the US, UK, Canada, the EU and New Zealand have also implemented extensions.

“At this stage it is unclear how long significant social and economic shutdowns will last in Australia and globally. The AICD received strong feedback that many companies had serious concerns with reporting in a normal timeframe, particularly companies with export activity, global supply chains or assets, and we welcome ASIC acknowledging those concerns through these actions.

“The AICD applauds the measures taken by ASIC to adapt their approach to acknowledge the challenges facing companies during this time,” Mr Armour said.

Media Contact: Maegen Sykes 0439 167 567