Southern Cross Media Group Limited (Southern Cross Media) has removed its presentation of a non-IFRS profit measure, following an ASIC review of its financial report for the year ended 30 June 2022.

ASIC’s review raised concerns about the presentation of ‘Profit before depreciation, amortisation, interest, impairment, fair value movements on financial derivatives and income tax expenses for the year from continuing operations’ in their statement of profit or loss (the non-IFRS profit measure). 

ASIC was concerned that non-IFRS profit information in the statement of profit or loss, which excludes expense items such as impairment losses, is not in accordance with accounting standards.

On 16 February 2023, Southern Cross Media announced to the ASX a re-presented statement of profit or loss without the non-IFRS profit measure.

ASIC Commissioner Danielle Press said, ‘ASIC’s regulatory guidance in this area is long-standing and companies have been on notice about the use of non-IFRS profit information for many years. Preparers of financial information are reminded that non-IFRS profit measures may not be included in financial statements.’

Background

ASIC previously raised concerns (22-238MR) with preparers of financial information about non-IFRS profit measures being included in financial statements.

ASIC Regulatory Guide 230 Disclosing non-IFRS financial information provides guidance on the use of non-IFRS financial information in financial reports and other corporate documents, such as transaction documents and market announcements.

Non-IFRS financial information is any financial information that is not presented in accordance with all relevant accounting standards.