Background:

COVID-19 has caused enormous disruption to the Australian and global economies. Most companies are operating under significantly different circumstances to those existing 12 months ago. In particular, the travel and tourism industry sector has been severely impacted.

The Australian Securities and Investments Commission (ASIC) requires corporate management to prudently review the measurement and recognition of the elements of the financial statements for the 30 June 2020 financial year, in response to emerging issues and changing circumstances that have impacted on businesses during the COVID-19 pandemic.

Required:

The Qantas Limited (Qantas) audit committee is meeting with the external auditors shortly. Assume

you are an accountant working for Qantas. The CEO has asked you to prepare business report for

the company's audit committee which:

Explains the specific reporting decisions, if any, Qantas management shall make for the following accounts to ensure compliance with AASB 136 Impairment of Assets: Inventories, Receivables, Intangible assets, and Property, plant & equipment.

• If there is no impact, you are required to explain why there is no impact.
• If there is a variable impact within each account, for example, if there are a number of different intangible asset components, you must provide sufficient information so the audit committee understands the reporting decisions required for each component of the account.
• You should rely on the 2019 Annual Report to ascertain the components in each account for Qantas.