Topic: The Role of the Continuous Disclosure Framework

Disclosing entities are regulated by the Corporations Act (2001), Accounting Standards and ASX requirements. The continuous disclosure requirements in ASX LR 3.1 require timely reporting to the ASX of significant events and financial information that is likely to impact the price of the entity’s securities. ASX LR 3.1 contains an overriding general requirement to disclose information that a reasonable person would expect to have a material effect on price, however the rule includes the following exceptions:

  • It would breach the law to disclose information
  • The information relates to an incomplete proposal or negotiation
  • The information comprises matters of supposition or is insufficiently definite to warrant disclosure
  • Information is generated for internal management of the company
  • Information is a trade secret
  • A reasonable person would not expect the information to be disclosed
  • The information is confidential and ASX has not formed a view that has ceased to be confidential.


Immediate notification to the ASX is required when particular instances occur (these are listed in LR 3.1) and includes:

  • The fact that the entity’s earnings will be materially different from market expectations.



Part I (guide 500 words)

Using the consolidated financial statements of Surfstitch Ltd, comparing the 2015 and 2016 Annual Reports comment on:

  1. The recent financial predicament facing Surfstitch Ltd (1 paragraph).
  2. The 2015 Goodwill, The Investment in Subsidiary, the cash position and
  3. The 2016 Profit and Loss Statement with particular reference to Impairment costs, Selling & Distribution and Administrative expenses.
  4. Based on your analysis, and BEFORE knowledge of the recent share price decline and share trading halt, would you have recommended to your clients to buy, hold or sell Surfstitch shares? Why?



Part II (guide 1500 words)


After reading the attached documents, newspaper articles and research papers, answer the following question:


Why is it necessary to have a continuous reporting regime for disclosure entities and is it effective?


Do you agree? Why or why not?


Note, there is not one correct answer to this question.  You will need to commence your research using the above three articles, and then supplement that with your own research. Check the marking scheme for further guidance.


Some useful journals include:

Academy of Accounting and Financial Studies journal

Academy of Accounting and Financial Studies proceedings

Accounting and business research

Accounting and finance (Parkville)

Accounting and the public interest

Accounting, auditing, & accountability

Accounting, auditing & accountability journal

Accounting forum

Accounting horizons

Accounting in Europe

Accounting, organizations and society

Accounting perspectives

Accounting research journal

Accounting review

Accounting standard

Accounting today

Advances in accounting

Advances in Accounting, Finance & Economics

Advances in international accounting

African journal of accounting, economics, finance and banking research

Asian Academy of Management Journal of Accounting & Finance

Asian journal of finance & accounting

Asian review of accounting

Asia-Pacific Management Accounting Journal

Australian accounting standard

Bank accounting & finance

British accounting review

Canadian accounting perspectives

Contemporary accounting research

Critical perspectives on accounting

European accounting review

International accounting bulletin

International journal of accounting

International journal of accounting, auditing and performance evaluation

International journal of accounting information systems

International journal of digital accounting research

International journal of intelligent systems in accounting, finance & management

Irish accounting review

Issues in accounting education

Issues in Social & Environmental Accounting

Journal of accounting & economics

Journal of accounting and finance research

Journal of accounting & organizational change

Journal of accounting and public policy

Journal of accounting, auditing & finance

Journal of accounting research

Journal of Accounting, Business & Management

Journal of bank cost & management accounting

Journal of business finance & accounting

Journal of contemporary accounting & economics

Journal of corporate accounting & finance

Journal of Financial Reporting & Accounting

Journal of international accounting, auditing & taxation

Journal of international accounting research

Journal of international financial management & accounting

Journal of management accounting research

Journal of modern accounting and auditing

Journal of public budgeting, accounting & financial management

Journal of theoretical accounting research

Malaysian Accounting Review

Pacific accounting review

Public accounting report

Qualitative research in accounting and management

Quarterly journal of finance and accounting

Quarterly Journal of Finance and Accounting

Research in accounting regulation

Review of accounting & finance

Review of accounting studies

Review of quantitative finance and accounting


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