The Australian Securities and Investments Commission (ASIC) called on companies on Monday that they need to exercise vigilance in submitting their financial reports especially this result season, as it warned supposedly erring firms that the agency is bent on scrutinising hundreds of firms for closer reviews.

ASIC said that about 350 financial reports would be up for review for the first half of the year and out the identified figures, 250 are publicly-listed while the remaining 100 are unlisted companies with a major number of users.

The corporate watchdog said that it has so far reviewed 130 financial reports for the December 31 2009 period but it is still undergoing follow on checks on some of those companies, which should be finalised shortly.

ASIC Commissioner Michael Dwyer said their review initially showed that companies and their auditors would need to give attention on asset impairment, fair value determination and going concerns.

Mr Dwyer added that all firms must also focus on "how they report their performance, including the appropriate use of any non-statutory profit measures, the quality of the operating and financial review, segment reporting, and the classification of items as other comprehensive income."

ASIC gave a stern reminder that non-statutory profit measures must be presented straightaway and should not detract from disclosure of statutory profit, as it emphasised that "new accounting standards to deal with segment reporting and other comprehensive income, plus the increasing number of business combinations, also made that an area of focus."

The ASIC announcement was made amidst recent developments on Elders Ltd, which earlier downgraded profit projections on June 22 prompting the corporate watchdog to initiate investigation on the agribusiness company's compliance with its continuous disclosure obligations.

Elders latest downgrade announcement revealed a full year loss of about $8 million to a maximum of $14 million as against its original prospectus target of $55.7 million earnings.

The company has admitted that ASIC is initiating an investigation in relation to Elders' profit downgrade but the agency gave assurance that its inquiries on Elders did not automatically indicate that the law has been violated.