Refer to the extracts from the Annual Report 2002 of Nestl India Ltd. regarding Impairment of Assets

Refer to the extracts from the Annual Report 2002 of Nestlé India Ltd. regarding ‘Impairment of Assets’ and from 2004 regarding ‘Reversal of the Impairment Loss’ as illustrated in this chapter. Analyse the cases and attempt the following requirements:
1. Examine and analyse the compliance of AS-28 in the treatment and disclosure of impairment of assets. Are there any deviations?
2. Examine the reasons cited by the company for booking impairment loss of different businesses. Are they justified?
3. Is the main purpose of booking the impairment loss to make the companies disclose a neat and clean balance sheet in the present even though the impairment could be reversed also in future? Opine.
4. Though based on the principle of prudence, don’t you think that recognition of impairment loss is at variance with the going concern concept?
5. Is the reversal of impairment losses by Nestlé justified? Analyse.