Bell Group Holdings Pty Limited (Bell Group) has lodged its financial report for the year ended 31 December 2024 with restated FY23 comparative figures following a review by ASIC as part of its proactive surveillance program to improve financial reporting quality.
Bell Group is a large proprietary company, which is required to prepare and lodge an audited financial report with ASIC.
When Bell Group lodged its 31 December 2023 financial report, it failed to consolidate Bell Financial Group Limited (Bell Financial), an ASX-listed entity in which Bell Group had a 45.6% shareholding. As the remaining shareholdings are widely dispersed, this gives Bell Group control meaning it should have consolidated Bell Financial.
The restatement of the FY23 comparative figures to include the consolidation of Bell Financial resulted in an increase in net assets of $129.8 million, an increase in profit after tax of $13.5 million and a decrease in net cash outflows of $72.4 million.
ASIC raised concerns with Bell Group that it had failed to comply with the requirements of AASB 10 Consolidated Financial Statements. This resulted in financial report users not having all the relevant information about the entity's true financial position and performance. Subsequently, Bell Group released its 31 December 2024 financial report that included a restatement to correct the error.
ASIC expects preparers of financial reports to give appropriate consideration to assessing control of related entities and the consolidation requirements of the Australian Accounting Standards.
Background
ASIC's financial reporting and audit surveillance program aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law, supporting investor confidence and the integrity of Australia's capital markets.
ASIC conducts regular reviews on a risk-basis of the financial reports of selected companies and other public interest entities, to monitor compliance with the Corporations Act 2001 and Australian Accounting Standards.
ASIC's recent media release highlights our financial reporting and audit focus areas for FY 2025-26.
