ASIC Review Of 31 December 2020 Financial Reports ASIC today announced the results from its review of the financial reports of 85 listed entities for the year ended 31 December 2020. The review was conducted as part of ASICs ongoing risk-based reviews of financial reports. ASIC has made inquiries of 15 entities on 22 matters. The largest numbers of matters relate to impairment of non-financial assets, asset values and disclosure in the operating and financial review. Asset values and disclosures under COVID-19 conditions Many companies have continued to make useful and meaningful disclosures on the impact of COVID-19 conditions. However, we still identify some entities with businesses adversely affected by the pandemic that did not appear to give sufficient attention to the reporting of asset values and financial position. We recognise COVID-19 conditions may create uncertainties which necessitate the use of probability weighted scenarios. Disclosure of assumptions is key in this context. We continue to make inquiries where companies appear to have made unrealistic and unsupportable assumptions about future cash flows, and where disclosures did not clearly identify the impacts of COVID-19 conditions on the business.