ASIC ends Harvey Norman inquiry

Harvey Norman MalaysiaThe Australian Securities and Investments Commission (ASIC) has ended its inquiry into Harvey Norman’s financial reporting practices, in particular whether the electronics and furniture retailer should consolidate franchise stores as part of its accounting standards.

ASIC in March said it would review Harvey Norman’s financial report, which followed media reports that raised concerns over the level of disclosure about the group’s relationships with franchisees.

Harvey Norman at the time said those reports contained false statements and assumptions.

“We do not intend to make further enquiries with the company in relation to the matters raised, in particular whether franchise stores should be consolidated by Harvey Norman,” ASIC said in a letter to Harvey Norman on Tuesday.

ASIC also said its letter should not be construed as an assurance that its financial report complies with accounting standards and requirements, and it may review other financial reports as part of its ongoing surveillance program.

In August, the retailer said overseas stores had helped it achieve a record $448.98 million in net profit, up 28.8 per cent on the prior year, and that offshore business could account for more than half of his retail empire’s profits in five-10 years.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Is the US-China trade war having an impact on your business?
Vote

Twitter

#AlceonGroup announce first Victorian @Lego_Group store to open in @WestfieldAU Doncaster #retail https://t.co/qMfYJp5WFM

4 days ago

Almost half of online marketplace @Kogan gross profit for FY19 came from its private label offering #retail #onlinehttps://t.co/lLwhKBnVp2

5 days ago

Talks of a merger between @OZretailers and @retailaustralia have come to a close, with the parties failing to align… https://t.co/hkqHyDsBkr

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered