This report provides a comprehensive analysis of Wesfarmers Limited's impairment testing practices, focusing on the financial year ending June 30, 2017. The analysis covers the company's approach to impairment testing across various assets, including trade receivables, property, plant, and equipment, goodwill, and other intangibles. It delves into the methodologies employed, such as fair value less cost of disposal (FVLCOD) and discounted cash flow techniques, and examines the key assumptions and estimates used in the process, including discounting rates and growth rates. The report also addresses the accounting treatment of impairment losses, the subjectivity inherent in the testing process, and offers insights into the company's financial reporting. Furthermore, it explores the reasons behind the IASB's concerns regarding the reflection of economic reality in previous accounting standards, particularly concerning operating leases and off-balance sheet liabilities. The report highlights the impact of these standards on financial data manipulation and the significance of accurate liability reporting.