This report examines the major accounting issues related to asset impairment for Myer Holdings Ltd, an ASX-listed company, focusing on the application of AASB 136. The analysis, prepared for the CFO, addresses the necessity of impairment testing, processes for determining impairments, and the information required, along with the flexibility available to management. The report highlights that based on current data, there is no significant asset impairment. It details the use of a discounted cash flow model for assessing goodwill and intangible assets, including key assumptions such as discount rate, terminal growth rate, and gross operating profit margin. The report concludes that Myer's management is flexible in implementing asset impairment tests, ensuring compliance with accounting standards and providing relevant disclosures.
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