ASIC has welcomed the decision by ASX-listed Fatfish Internet Group Limited (Fatfish) (formerly Atech Holdings Limited) to restate its results for the period ended 31 December 2014. The restatement was announced to the market on 10 September 2015.

ASIC had previously made inquiries of Fatfish regarding its accounting for the acquisition of Fatfish Internet Pte Ltd and Fatfish Capital Pty Ltd in July 2014, as part of its financial reporting surveillance program.

In the 31 December 2014 financial report, the transaction was accounted for as an acquisition by Fatfish but should have been treated as a reverse acquisition whereby one of the acquired entities is treated as the in-substance acquirer for accounting purposes. As a consequence, Fatfish has now announced that it will increase the expense for listing costs by $4,433,530 and reduce goodwill by $1,912,830 including additional impairment of $1,581,000.

More information about current areas of focus for company directors and auditors in their financial reporting is outlined in ASIC media release 15-139MR Focus areas for 30 June 2015 financial reports.