Exporters Ltd is a listed ASX company whose principle business activity is exporting locally manufactured cereals. Recently Exporters Ltd employed you as financial accountant and assigned you to the 30 June 2021 Financial Statements Working Party. This role requires you to review selected Exporters Ltd press releases, identify financial reporting implications and consider the impact of related professional judgements. The Financial Statement Working Party has provided the following extract from an Exporters Ltd press release. Press Release Issue Date: 1 August 2020 Due to COVID-19, prevailing economic conditions in 2020 and the related long-term impact on the companys exports to international trading partner countries, Exporters Ltd expects to recognise a material non cash impairment loss for its international distribution licences during the year ended 30 June 2021.

200 words explanation how the events and conditions described in this press release will affect information and individual balances presented in the Exporters Ltd current years statements of: (a) financial performance; and (b) financial position. Your explanation must also consider one (1) subsequent implication for a financial statement user group that is supported by an explanatory example.