Some media reports, such as the Australian Financial Review describe the situation as a ‘farce’, others reported the story more prosaically.
But however it is portrayed, there is definitely some sort of examination of Harvey Norman’s financial accounts by ASIC, the key corporate regulator.
It’s just whether the examination is routine, as Harvey Norman claims, or more than that, according to some media reports.
Two days after Gerry Harvey’s Harvey Norman rejected a claim that the ASIC was reviewing its accounts for the 2015-16 financial year, the company said on Thursday said that the regulator was undertaking a “routine review”.
Media reports said that statement from Harvey Norman came after it was contacted by ASIC on Wednesday evening.
The company was earlier this week asked by market operator ASX to respond to an article in The Australian Financial Review that claimed ASIC was reportedly reviewing how Harvey Norman reports its exposure to franchisee losses.
Harvey Norman claimed in a statement on Tuesday the article made false statements and assumptions, and made assertions and drew conclusions that were also false.
The company said on Thursday it remains of the view that its financial report for the 2015-16 financial year is in accordance with the law.
Shares in Harvey Norman dropped eight per cent on Monday after the AFR article was published, gained three per cent on Tuesday after it rejected to the article’s claim, and fell a total of 3% over Wednesday and Thursday to end yesterday at $4.35. That’s down more than 11% from last Friday’s close of $4.89.
In a statement issued Thursday night, Harvey Norman had another crack. In a letter headlined “ASIC is not investigating Harvey Norman Accounts, Further False Statements by AFR and SMH”
In articles published by each of the Australian Financial Review (AFR) and Sydney Morning Herald (SMH) on 23rd March 2017, statements were made to the effect of:
- “Harvey Norman admits ASIC is investigating its accounts” (AFR), and
- “Harvey Norman … admitted its accounts were under investigation by the corporate watchdog” (SMH).
Each of the statements is false. ASIC is not investigating the accounts of HVN.
Interested parties should contact – ASIC’s Media Unit for confirmation.
The financial report of HVN for the year ended 30 June 2016 and the financial report for the half year ended 31 December 2016, each lodged with ASIC and ASX, are in accordance with the law.
HVN confirms each of the statements made in the ASX release dated 21st March 2017 and ASX release dated 23rd March 2017.
