ASIC notes the decision by Pioneer Credit Limited (Pioneer) to change the method of classifying and measuring its Purchased Debt Portfolios (PDP) from fair value through profit or loss to amortised cost in its financial report for the year ending 30 June 2019.  Pioneer continues work to determine the impact of the change.

ASIC had raised concerns with Pioneer on the classification and measurement of PDPs at fair value through profit or loss rather than amortised cost under a new accounting standard in its financial report for the half-year ended 31 December 2018.  

As outlined in ASIC media release 18-364MR Major financial reporting changes and other focuses, the impact of the new accounting standards remains a focus in ASIC’s surveillance of financial reports.