media release (15-162MR)

Sapphire Aged Care reissues financial report

Published

ASIC has welcomed changes to the financial report of Sapphire Aged Care Pty Ltd (Sapphire), including the reclassification of assets acquired in the purchase of the Parkwood Aged Care Group.

ASIC reviewed Sapphire's financial report for the year ended 30 June 2014. Following ASIC's inquiries, Sapphire has reissued its financial report and:

  • reclassified $54.5 million previously shown as related party loans and receivables to goodwill in connection with the purchase of the Parkwood Aged Care Group
  • wrote back a previous revaluation of bed licenses of $7.4 million
  • reduced cash outflows for borrowings from related parties by $51.8 million and cash inflows from accommodation bonds by $53.6 million in its cash flow statement.

Similar changes are reflected in a reissued financial report for Sapphire Care Pty Limited.

It is important to users of financial reports of a company that those reports correctly reflect the assets and transactions of a company. Identifiable intangible assets should only be revalued upwards where there is an active market.

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