ASIC alleges that Banksia’s financial reports for the 2010-11 and 2011-12 financial years and the financial report for the half year ending December 31, 2011 did not comply with the relevant accounting standards.

It said the reports did not give a true view of Banksia’s financial performance because the amount disclosed for the provision for impairment of receivables was significantly less than it ought to have been.

ASIC also claimed Mr Godfrey did not have, and failed to obtain, a proper understanding of the requirements of a relevant accounting standard.

The relevant accounting standard required Mr Godfrey to understand the value at which a loan or receivable was to be recognised in Banksia’s financial reports, whether or not there was objective evidence that a loan or receivable was impaired and, if so, the proper amount of any provision for impairment.

ASIC alleged Mr Godfrey calculated and approved the impairment of receivables for Banksia, and his actions meant Banksia’s financial reports failed to give a true view of Banksia’s financial position and failed to secure Banksia’s compliance with an accounting standard.

It is seeking a ruling from the Federal Court that Mr Godfrey contravened the Corporations Act. It wants it to impose a financial penalty on Mr Godfrey and disqualify him from managing corporations.

The court is due to hear the case on August 3.

The court action against Mr Godfrey is the latest in a series of actions over the collapse of Bankisa in 2012 that has left 16,000 investors, including more than 1000 in the south-west, out of pocket.

The Victorian Supreme Court last year approved a settlement of $13.25 million, to be paid by Banksia’s directors, solicitors and auditors RSD chartered accountants and other professional firms, after investors took a class action.

A separate court action being taken by investors against Banksia’s trustee company, The Trust Company, for $200 million is due to go to court in February, next year.