Bell Group lodges revised 2024 report to address ASIC concerns

The Australian Securities and Investments Commission (ASIC) has successfully petitioned large financial services firm, Bell Group Holdings, to re-lodge its 2024 annual report after a review found its FY23 comparative figures did not appropriately represent its “true financial position and performance”.

The review, conducted as part of the regulator’s financial reporting and audit surveillance program, indicated Bell Group had failed to consolidate Bell Financial Group Limited – an ASX-listed entity in which it maintains a 45.6 per cent share – in its report filed for 31 December 2023, downplaying its net assets by just under $130 million.

Given that the remaining shareholdings in Bell Financial are “widely dispersed”, this failure meant Bell Group did not comply with consolidation rules as it has control over the entity and it should have been consolidated.

Bell Group’s revised 2024 financial report which contains restated FY23 comparative figures to incorporate the consolidation of Bell Financial revealed a $129.8 million increase in net assets, a $13.5 million increase in net profit after tax (NPAT) and a $72.4 million decrease in net cash outflows.

“ASIC raised concerns with Bell Group that it had failed to comply with the requirements of AASB 10 Consolidated Financial Statements,” the statement from the regulator said.

“This resulted in financial report users not having all the relevant information about the entity’s true financial position and performance. Subsequently, Bell Group released its 31 December 2024 financial report that included a restatement to correct the error.

“ASIC expects preparers of financial reports to give appropriate consideration to assessing control of related entities and the consolidation requirements of the Australian Accounting Standards.”