Viva Energy (ASX:VEA) announced a shift in its accounting strategy following a targeted review by the Australian Securities and Investments Commission, resulting in an additional $25 million impairment charge.
The adjustment, detailed in the company's financial report for the year ended Dec. 31, 2025, underscores the regulator's intensifying focus on asset valuation transparency within the Australian energy sector.
The intervention originated from an ASIC surveillance programme into Viva’s 2024 financial reporting.
Investigators raised concerns regarding the company’s "Shell Card" cash-generating unit model.
Viva had previously grouped various high-utilisation retail sites together, arguing their cash flows were interdependent due to the national wholesale fuel card network.
However, ASIC maintained that under Accounting Standard AASB 136, impairment must be assessed at an individual asset level whenever possible.
Because the financial performance of each convenience site could be independently determined, the regulator deemed the collective grouping inappropriate.
Consequently, Viva Energy has revised its judgement to treat all sites as separate units.
The transition contributed to a total impairment expense of $558.8 million for the 2025 period, with $25 million directly attributed to this change in methodology.
At the time of reporting, Viva Energy’s share price was $2.58.