The ASX Group's activities span primary and secondary market services, including capital formation and hedging, trading and price discovery (Australian Securities Exchange) central counter party risk transfer (ASX Clearing Corporation); and securities settlement for both the equities and fixed income markets (ASX Settlement Corporation). This is also the second year of application of the following standards that applied from years commencing 1 January 2018:Â. Tangible assets are comparatively easy to price, and therefore they are often used to express the value of a company. ASIC would seek to require MDA operators that do not provide custodial and depository services to hold the greater of: $150,000; 0.5% of the average value of all MDA assets under advice up to $5 million; or; 10% of average revenue. The Australian Stock Exchange has also been contemplating this issue for its own listing rules requirements around net tangible assets. It is important that directors and management ensure that companies inform investors and other financial report users of the impact on reported results.  Required disclosure on the effect of the new standards is more extensive than that made by many companies for the 30 June 2019 half year. a net tangible assets ("NTA") requirement. For more information, see how you apply for relief . ASIC’s concern is also an example of market scrutiny of unlisted asset valuations. 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AASB 17 Insurance Contracts (applies from years commencing 1 January 2021); and 5. (b) Net tangible assets (NTA) as at the end of the financial year (c) The NTA the licensee was required to hold under subsection 912AB(4) applying under ASIC Class Order [CO 12/752] as at the end of the financial year (d) Cash and/or cash equivalents as at the end of the financial year development costs meet the six strict tests for deferral. The most significant change is a new NTA test or Net Tangible Asset Test which is going to phased in over a two-year period. Effect of AASB 16 on Net Tangible Asset Calculations Introduction The Australian Securities and Investments Commission (ASIC) has stated that it considers the right of use (ROU) assets arising from the application of AASB 16 Leases as a ‘intangible assets’, requiring entities to exclude such assets from Net Tangible Asset (NTA) calculations. The recoverability of the carrying amounts of assets such as goodwill, other intangibles and property, plant and equipment continues to be an important area of focus. This includes calculating the net tangible assets, which the regulations refer to as adjusted assets less adjusted liabilities. Decreases in Net Tangible Assets with net assets of more than $50 million (excluding banks) can no longer be included as an adjusted asset. (iv) ASIC consents in writing to the licensee treating the amount owing as not being an excluded asset; and (g) ... net tangible assets or NTA means adjusted assets less any adjusted liabilities and must be calculated on the basis of assets and liabilities valued and recognised as they would appear if … For example, a net tangible assets requirement would include lease liabilities but intangible assets such as a lease right-of-use asset would not be counted in meeting that requirement. 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