Impairment Disclosure and Analysis as per AASB 136 - Desklib

RELIANCE WORLDWIDE CORPORATION LIMITED
DISCLOSURES REQUIRED
IN FINANCIAL
REPORTING-
IMPAIRMENT
DISCLOSURE AND
ANALYSIS AS PER AASB
136
Student Name:
Student ID:
4/27/2018

Contents
EXECUTIVE SUMMARY..............................................................................................................3
INTRODUCTION........................................................................................................................4
IMPAIRMENT REPORTED IN ANNUAL REPORT.........................................................................5
IMPAIRMENT TESTING CHALLENGES........................................................................................8
DISCLOSURES IN ANNUAL REPORT CONFORMITY WITH DISCLOSURES IN AASB 136...............9
FULFILLMENT OF REQUIREMENT OF FINANCIAL REPORTING.................................................10
CONCLUSION AND RECOMMENDATION.................................................................................11
REFERENCES...........................................................................................................................12
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EXECUTIVE SUMMARY
Financial disclosures are necessary part of reporting by the company and its
management. The assets of the company plays important role through which the
wealth of its security holders can be assessed. The report has been prepared with the
four basic objectives. First aim of this report is to make an analysis of the impairment
charged in the financial statements. Second aim is to make an analysis of the key
issues involved in the testing of impairment as mentioned in the annual report. The
third objective of report is to check whether the required disclosures are aligning with
requirements laid down in AASB 136- financial disclosures for impairment of assets
of the company. The last major objective is to assess whether the disclosures are
adequate in terms of the objectives of the general purpose financial reporting. With
these considerations the report has been presented with the divisions into appropriate
headings and sub headings.
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INTRODUCTION
As the title suggest the report revolves around the impairment of assets. Each
company operating across the globe is involved in increment of its Assets base.
Higher asset base of any company shows its strong nature of working in the economy.
For high asset base, correct valuation of asset is required to be done after considering
the necessary depreciation and impairment. This report helps to understand
impairment of asset in detail. The report has been framed using proper structure and
is divided into major five parts. First part helps to understand impairment policies
adopted by the company and their disclosure in annual report of the company. Second
part describes the major challenges faced by the board while checking the asset for
impairment. Third part describes that the chosen company discoursers are as per the
required principles laid in AASB 136. The forth part helps in understanding the need
of proper impairment disclosures which ultimately helps in achieving the objective of
general purpose financial reporting. The report has been ended with proper conclusion
and recommendations. Reliance Worldwide Corporation Limited has been chosen for
the analysis. The report has been prepared using the information present in annual
report of the company for the year ending 30th June 2017 along with secondary data
available on reliable internet sources.
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