April 1, 2018


Several companies have recently had their disclosures about customer contracts and revenue projections called into question by the ASX. The ASX has updated Guidance Note 8 (see below), to include the disclosure expectations for material contracts. As a minimum, announcements should include: customer name, term of the contract, the nature of products or services to be supplied, significance of the contract, any material conditions that need to be satisfied before the customer is legally bound to proceed with the contract, and any other material information relevant to assessing the impact of the contract or the price or value of the entity’s securities.

Listed companies that decide to disclose revenue projections for contracts should consider the guidance in ASIC’s Regulatory Guide 170 – Prospective Financial Information.