ASIC has welcomed the decision by ASX-listed American Patriot Oil & Gas Limited (the Company) to correct prior period errors and related party disclosures in its 30 June 2015 financial report.

ASIC had made enquiries of the Company regarding its accounting treatment of capital raising costs, classification of borrowings and completeness of related party transactions in the Company's 30 June 2014 and 31 December 2014 financial reports, as part of ASIC's financial reporting surveillance program.

In its 30 June 2015 financial report, the Company has retrospectively amended its 30 June 2014 comparative figures by:

• expensing $295,927 of capital raising costs previously offset in equity,
• reclassifying $654,103 of trade payables from borrowings in the statement of financial position and $339,748 of outflows from repayment of borrowings to payments to suppliers in the statement of cash flows, and
• including $200,000 of borrowings received and repaid, previously netted together, and $200,000 of interest paid on borrowings in the statement of cash flows.

The Company has also:

• included Mr Kleanthe Hatziladas as a key management person with remuneration of $360,000 for the year ended 30 June 2015      (2014: $120,000), and
• disclosed a number of transactions with parties related to Mr Hatziladas totalling $430,000 for the year ended 30 June 2015 (2014: $1,031,666)

Preparers of financial reports should ensure that they provide high quality, useful and meaningful information to investors and users of those reports. More information about ASIC's key areas of focus is available from ASIC media release 15-139MR Focus areas for 30 June 2015 financial reports.