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Harvey Norman can't explain fall in shares

Harvey Norman has rejected reports the Australian Securities and Investments Commission (ASIC) is reviewing how the retailer reports its exposure to losses made by its franchisees.

Harvey Norman shares fell eight per cent on Monday, and the Australian Securities Exchange asked the company if it knew why, and asked for a response to a claim made in The Australian Financial Review about ASIC's reported review of the company's accounts.

Harvey Norman said its recent financial reports are in accordance with the law, and said the article made false statements and assumptions, and then made assertions and drew conclusions that were also false.