media release (22-053MR)

Oliver’s Real Food announces a decrease in asset values following ASIC review


Oliver’s Real Food Limited (Oliver’s) has announced to the ASX that they will undo $4.5 million of impairment reversals across 14 of their stores, following ASIC’s review of Oliver’s financial report for the year ended 30 June 2021. 

Oliver’s will make the adjustments in its financial report for the half-year ended 31 December 2021, resulting in a reduction to the book value of Oliver’s stores. Before Oliver’s adjustments, its total assets on 30 June 2021 amounted to $32.3 million.

Due to the continuing impacts of COVID-19 restrictions on its business, ASIC questioned the impairment reversals recorded by Oliver’s for three of its stores in Victoria, and the assumptions about their future profitability. 

Specifically, ASIC was concerned that:

  • the actual sales performance of the three stores in 2021 had decreased compared to the previous year;
  • the forecast sales for one of the stores in metropolitan Melbourne did not adequately reflect the impacts of the extended lockdown that commenced shortly after the balance date; and
  • the sales forecasts for the three stores did not sufficiently allow for the likelihood of a prolonged period of subdued trading conditions, as was Oliver’s experience from previous lockdowns.

ASIC has previously emphasised that the circumstances and environment in which entities operate can change significantly from one reporting period to the next under COVID-19 conditions. Assumptions about the future should be reasonable and supportable, and where relevant, have regard to events that occur after balance date.


ASIC’s financial reporting surveillance program aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law, supporting investor confidence and the integrity of Australia’s capital markets.

ASIC conducts regular reviews on a risk-basis of the financial reports of selected listed companies and other significant public interest entities to monitor compliance with the Corporations Act and Australian Accounting Standards.

AASB 136 Impairment of Assets sets out the requirements for reversing impairment losses previously recognised against non-financial assets.

In addition to questioning the impairment reversals recorded against the three stores, ASIC requested Oliver’s to evaluate whether its concerns should be applied to its other stores.

Media enquiries: Contact ASIC Media Unit