ACCG224 S1 2019 - Financial Analysis Report: Impairment Judgements

This report provides a financial analysis of the a2 Milk Company, an ASX 300 listed entity, focusing on its compliance with professional judgment requirements in financial statements, particularly concerning impairment loss disclosures. It examines the company's methods for computing recoverable amounts, value in use, applying discount rates, and estimating cash flow projections. The analysis covers impairment losses reported for patents, software, and project development. It critically discusses whether the entity applied professional judgments appropriately in treating impairment losses, considering ASIC guidelines and fundamental characteristics of financial statements. The report concludes that the entity generally applies professional judgments but recommends clearer disclosure regarding impairment on tangible assets.