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Report on Media Release of ASIC

   

Added on  2020-02-24

11 Pages1904 Words49 Views
Running head: ACCOUNTING STANDARD AND REGULATIONSAccounting standard and regulationsName of the UniversityName of the studentAuthors note

1ACCOUNTING STANDARD AND REGULATIONSExecutive summary:The report discusses about media release of ASIC that would assist readers in providing clearidea about concepts of impairment of assets and treatment of it by Myer holdings limited.Moreover, report also demonstrate test of impairment in according with AASB 136.Information required for determining impairment of assets, impairment evidence andmanagement flexibility in determining impairment of assets are also demonstrated in report.

2ACCOUNTING STANDARD AND REGULATIONSTable of ContentsIntroduction:...............................................................................................................................3Discussion:.................................................................................................................................4a)Evidence of Impairment testing of assets of Myer Holdings limited.....................................4b)Outlining process for determining asset impairment..............................................................5c) Information is required in determining asset impairment......................................................6d)Management flexibility in determining impairment of assets................................................7Conclusion:................................................................................................................................8Reference:..................................................................................................................................8

3ACCOUNTING STANDARD AND REGULATIONSIntroduction:Australian securities and investment commission has asked companies to focus onproviding relevant information that are meaningful and useful to their users of financialreports. It is required by auditor and directors to focus in accounting policy choice and assetsvalue. ASIC is of the view that most of companies make use of unrealistic assumptions fortesting values of assets and application of inappropriate approaches in areas of revenuerecognition. Risk criteria forms the basis of reviewing financial reports that helps indetermining compliance with accounting standards and Corporation act. For addressingissues, ASIC features some of zones by declaring range of concentrations of publicorganization and listed organizations. It is stated by commissioner of ASIC that chiefs andevaluator as per past announcing periods should concentrate on decisions of bookkeepingstrategies and estimating benefits (Albu et al. 2014). AASB 136 states that it is required by entity to conduct impairment test for assets thatwill ensure that assets are not overvalued. Value of assets that can be compared torecoverable sum and associated benefits are no involved in financial reports. Recoverablevalue of assets for disposal and value in use is more than assets fair value less costs. Suchassets might involve goodwill and intangible assets. Any organization showing signs ofrepairing assets should undertake impairment test (Oulasvirta 2014). Moreover, test can alsobe undertaken for assets where they do not make any income such as cash generating unit.There are internal and external sources of indication for carrying out assets impairment.

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