Assessment Task Part D

Please select a company listed in the ASX and has reported goodwill in its balance sheet. Go to the website of your company, by clicking on the URL next to your company in the list of companies in the file “Your Company”. Then go to the Investor Relations section of the website. This section may be called, “Investors”, “Shareholder Information” or similar name.

In this section, go to your firm’s annual reports and save to your computer your firm’s latest annual report. For example, these may be dated 30 June 2015 or 31 March 2016. Do not use your firm’s interim financial statements or their concise financial statements. You are need to do the following tasks:

Please read the relevant footnotes of your firm’s financial statements carefully and include information from these footnotes in your answer.

Within your firm’s latest annual report

(i) From your firm’s annual report find out the asset/s that your firm has tested for impairment.

(ii) How did your firm conduct the impairment testing?

(iii)Has your firm recorded any impairment expenditures during the period?

(iv) Identify the key estimates and assumptions used by your firm in conducting the impairment testing.

(v) Do you find any sort of subjectivity involved in the impairment testing process? How can this subjectivity influence the outcome of the impairment testing?

(vi) What do you find interesting, confusing, surprising or difficult to understand about the impairment testing?

(vii) What new insights, if any, have you gained about how companies conduct impairment testing?

(viii) Based on your assignment, comment on the “fair value measurement”.