One of the consequences of the volatile capital markets is an increased risk of impairment to goodwill and non-current assets. To support you in year end reporting, we’ve developed the Smart Class which comprises content covering Technical matters, Getting Audit ready, and supporting Directors in fulfilling their responsibilities. Access the resources below in your own time and at your own pace.
Technical
Impairment and rising inflation
Rising inflation has far-reaching implications and may impact not only product pricing and the cost of expenses, but also product volume as customer behaviours change. These factors may alter the cash flows an entity is able to generate, giving rise to impairment indicators.
A guide to navigating impairment model risk
What you need to understand and address impairment model risk.
Impact of climate change on cash flow projections
In order to achieve the aims of the Paris Agreement and limit the impact of climate change on the planet, entities worldwide are in the process of re-assessing their business models and strategy. We would expect these changes to have an impact on cash flows and therefore also on impairment testing.
Key disclosures under AASB 136 Impairment of Assets
Disclosures in the financial statements are the way you express your consideration and thought processes throughout the journey of testing for impairment.
Getting Audit Ready
Impairment testing is a continuing area of focus of regulators, Audit Committees and other external parties.
Voice of the regulator
Voice of the regulator: Interview with Doug Niven, ASIC
Voice of the regulator: Interview with Doug Niven, ASIC
Supporting Directors in their Responsibilities
Managing your reporting to the Board
As a result of increased focus from the regulator and other stakeholders and increased risk as a result of current market conditions, the Board of Directors will be looking to management to provide a detailed assessment of their considerations of Impairment under AASB 136.
The training materials and guidance presented here are not client-specific and have been prepared for general informational purposes. This does not constitute professional advice on facts and circumstances specific to any person or entity. You should not act upon the information contained in this publication or training without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this training or publication. The information contained in this publication was not intended or written to be used, and cannot be used, for purposes of avoiding penalties or sanctions imposed by any government or other regulatory body. PricewaterhouseCoopers, its members, employees, and agents shall not be responsible for making any decisions in respect of accounting policies on behalf of management or for any loss sustained by any person or entity that relies on the information contained in this training or publication. Certain aspects of this guidance may be superseded as new guidance or interpretations emerge. Financial statement preparers and other users of this publication are therefore cautioned to stay abreast of and carefully evaluate subsequent authoritative and interpretative guidance and management have ultimate responsibility to make decisions on their financial reporting framework (including impairment related work).
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