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.’