ASIC notes that Frontier Capital Group Limited (Frontier) has amended the presentation of its goodwill impairment expense for the half-year ended 30 June 2016.

In Frontier’s Appendix 4D lodged with ASX on 31 August 2016, Frontier recognised an impairment expense of $7,965,389 in other comprehensive income rather than net loss. This is contrary to the requirements of the accounting standards.

In response to an enquiry by ASIC, Frontier has released an amended Consolidated Statement of Profit or Loss and other Comprehensive Income which presents the impairment expense as a component of the net loss for the period. Total comprehensive loss for the period remains unchanged.

ASIC made enquiries about the recoverability of goodwill as part of its review of the financial report of Frontier for the year ended 31 December 2015.