What is an Operating and Financial Review?
The Operating and Financial Review (OFR) is a key document that supports and complements the annual financial report of listed entities. It is your opportunity to tell your story, providing explanations for the performance during the year and how it has set the organisation up for the future.
OFR disclosures have been included as an area of focus in the ASIC semi-annual Financial Reporting and Auditing Focus areas for a number of years and they have been taking actions against entities based on inadequate disclosures in the OFR. As a result of the ASIC financial statement review for June 2022 – June 2023, 18 companies were required to enhance their disclosures around business risks in the OFR.
Understand the Requirements for OFR disclosures
It is important that all entities who are required to prepare an OFR understand the requirements of the Corporations Act (2001) and ASIC's expectations as outlined in ASIC Regulatory Guide RG 247 Effective disclosure in an operating and financial review. We have created a guide to assist companies to do this.
Read our guide for creating effective Operating and Financial Reviews for further information on:
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What is required to be included in the OFR;
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The relationship between the OFR and prospectuses;
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The use of non-IFRS Information;
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The use of the unreasonable prejudice exemption; and
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Your auditor’s obligations
If you want further assistance in ensuring that your OFR meets the ASIC requirements and effectively tells your organisations story, please contact your local Moore Australia advisor.