Heads Up — Effective disclosure in an operating and financial review

Published on: 09 Oct 2012

On 17 September 2012, the Australian Securities and Investments Commission (ASIC) issued Consultation Paper 187 Effective Disclosure in an Operating and Financial Review (CP 187) in order to obtain feedback from stakeholders on its proposed draft new regulatory guide for directors on providing useful and meaningful information to investors when preparing an OFR in a directors’ report of a company, registered managed investment scheme or disclosing entity that is listed (listed entity).

The proposed guidance is principle based and outlines considerations that will assist directors to practically apply the OFR requirements under s.299A of the Corporations Act 2001 and may result in additional detail in OFRs given guidance around:

  • Level of detail required
  • Application of the unreasonable prejudice exemption
  • Good disclosure practices.

Commentary is also included on the current use, perhaps over-use, of the unreasonable prejudice exemption is accompanied by more prescriptive guidance on its application.

This Heads Up alert from Deloitte (Australia) discusses the impacts of CP 187.


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