Financial Reporting Conversations

When companies collapse shortly after receiving a clean audit opinion, the same question always follows: where were the auditors? But audit failure rarely begins at the moment the opinion is signed. In this episode of Financial Reporting Conversations, Wayne Basford and Judith Leung unpack how audit failures quietly develop through a cascade of decisions made throughout the audit process from client acceptance and understanding the business to risk assessment, audit procedures, and failures i...

When audit failures occur, the focus almost always turns to the audit file — missed procedures, weak evidence, or poor judgment. But what if audit failures are actually driven by something more fundamental? In this episode, we examine whether audit failures are caused by resource constraints within the engagement team. From insufficient technical expertise and lack of industry knowledge to unrealistic time budgets and staffing pressures, we unpack how these resource constraints can undermine ...

Identifying the acquirer under IFRS 3 sounds simple until reverse acquisition scenarios prove otherwise. One of the most common errors in IFRS 3 is getting the acquirer wrong, and when that happens, the entire set of financial statements can be materially misstated. In this episode, we unpack how reverse acquisition issues arise, why legal form often misleads, and how to correctly identify the acquirer under IFRS 3. We walk through real-world indicators of control, common “Blind Freddy” mista...

The most dangerous phase in mining isn’t exploration, it’s development. This is where projects become capital intensive, assumptions get tested, and going concern risks start to emerge. In this episode, we unpack the financial reporting challenges that arise as mining entities transition out of IFRS 6 into IAS 36, and why this shift often exposes deeper issues. We explore how going concern becomes a critical judgment area, especially when funding, timelines, and engineering realities don’t al...

Financial reporting standards have existed for decades. Yet revenue recognition errors continue to appear in financial statements, audit files, and regulatory findings under IFRS 15. So why does revenue recognition still go wrong under IFRS 15? In this episode, Wayne Basford and Judith Leung explore the practical judgement areas that cause recurring mistakes when applying IFRS 15 Revenue from Contracts with Customers. They discuss why the five-step model can appear straightforward in theory b...

Get the IFRS 3 gateway wrong, and every number that follows is wrong. Before goodwill is measured, before fair values are calculated, before disclosures are drafted, there is one critical judgment that determines everything: does IFRS 3 apply at all? In this episode, Wayne Basford and Judith Leung examine the gateway question at the heart of IFRS 3. They unpack why the distinction between a business combination and an asset acquisition is still frequently misapplied, how the concentration tes...

Why do so many financial reporting risks only become obvious after ASIC starts asking questions? In this episode, Wayne Basford and Judith Leung share their 2026 financial reporting predictions and reflect on where the real risks are likely to emerge for preparers, auditors, and audit committees. They discuss why mandatory climate reporting may be less dramatic than many expect, why audit quality and revenue recognition are firmly back on the regulator’s agenda, and how long-standing issues l...

Why do financial reporting frauds emerge in organisations that don’t see themselves as high-risk? In this episode, Wayne and Judith unpack the real drivers behind financial reporting fraud and explain why these risks often grow quietly inside day-to-day commercial decisions. They break down the fraud triangle and show how pressure, opportunity, and rationalisation combine to create misstatements that feel like “just a timing adjustment” rather than a breach of standards. You’ll hear how budge...

Why are the same financial reporting mistakes still appearing every year, even with no new standards to blame? In this episode, Wayne and Judith unpack the recurring issues they saw across the June 2025 reporting season and why these errors continue to trip up preparers and auditors. They break down the themes causing the most trouble: boilerplate or missing accounting policies, “single segment” disclosures that don’t match how the business is actually run, incorrect revenue disaggregation, I...