ASIC has welcomed the decision by ASX-listed, Wollongong Coal Limited (Wollongong), to record adjustments related to the recoverability of both trade receivables and mine development assets in its financial report for the year ended 31 March 2015. 

Wollongong has restated the 31 March 2014 balance to reflect impairment losses on trade receivables of $69 million. Wollongong has also recorded an impairment loss on mine development costs of $48 million in the year to 31 March 2015. 

ASIC reviewed Wollongong’s financial report for the year ended 31 March 2014 as part of its financial reporting surveillance program and made inquiries about Wollongong’s assessment of the recoverability of both trade receivables and mine development assets. 

As outlined in ASIC media release 15-139 MR Focus areas for 30 June 2015 financial reports, asset values remains a focus area of our financial reporting surveillances, particularly those companies affected by lower commodity prices.