To complete this assignment, you will need to select a suitable company yourself that meets the following criteria:
The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com);
The company must publish audited annual financial reports in English, fully complying
with IFRS or AASB standards and
The company must have a 30 June year end.
Your report must address each of the following:
a) The role of professional judgment in accounting andtwoimplications on the users of accounting information if the professional judgment has not been made in the most reasonable/appropriate manner. (5 marks)
b) Provide a detailed explanation of the impairment write-down(s) made by your company for the year ended 30 June 2018. Your explanation should include a discussion
- of the asset/s that were impaired;
- the type of estimations required to write the impairment;
- the amount of the impairment write-down and
- relevant disclosures in the 30 June 2018 financial report in relation to impairment testing
(10 marks)
c) Based on your findings in part b, critically discuss whether the professional judgments applied in the impairment write-down of the assets to estimatethe cash flows, the discount rates, the CGUs, the allocation of corporate assets & costs to CGUs and the appropriate use of fair valueshave been reasonable/appropriate. Recommend actions (if any) for improvement in the application of professional judgments relating to these estimations.
Please refer to the ASIC media release and other relevant information sources to answer the above question. (15 marks)
d) Based on your findings in part c, critically analyse to what extent the professional judgments applied on impairment write-downs satisfythe fundamental characteristicsof useful financial information andthe objectiveof financial reporting. (10 marks)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here