ASIC notes the decisions by Mustera Property Group Limited (Mustera) to reflect the following changes through its financial report for the half-year ended 31 December 2018:

• reclassify its non-controlling interest in the Mustera Property Fund (the Fund) from equity to a liability, reducing reported net assets by $7.1 million as at 30 June 2018; and
• make additional disclosure on transactions with a related party during the year ended 30 June 2018.

ASIC had raised concerns on the treatment of the non-controlling interest in the Fund as equity rather than a liability in Mustera’s financial report for the year ended 30 June 2018, as well as the relationship and transactions with a related party during the year. 

As outlined in ASIC media release 18-364MR Major financial reporting changes and other focuses, the non-consolidation of controlled entities remains a focus in ASIC’s surveillance of financial reports.