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Jack Roth is the Financial Controller at Fischer Enterprises Limited ( Fischer Enterprises ) . In May 2 0 2 4 , Jack became aware

Jack Roth is the Financial Controller at Fischer Enterprises Limited (Fischer Enterprises).
In May 2024, Jack became aware of impairment indications relating to land and buildings owned by Fischer
Enterprises. An independent valuer has provided a measurement of the assets recoverable amount in June 2024,
which would result in an impairment loss of $1.2 million being recognised. property valuation as she feels no impairment write down will be necessary. She said that, if property prices are still low
after a few months, there will be more justification for recognising an impairment loss in the year ended 30 June 2025.
Jack Roth is a Chartered Accountant.



 
Required
Identify and explain two (2) key fundamental principles of the International Code of Ethics for Professional
Accountants at risk for Jack Roth if he does not recognise the impairment loss in the year ended 30 June 2024
financial statements.
Senior management of the company will share in a cash bonus, provided a $2 million profit after tax is achieved for the
year ended 30 June 2024. Jack is not entitled to this cash bonus as he is not considered senior management.
Recognising the $1.2 million impairment loss would prevent the $2 million profit after tax being achieved.
Jack knows that senior management are determined for the target profit to be achieved for the year ended 30 June
2024 as no cash bonus was paid last year due to Fischer Enterprises not achieving that years target profit.
It is now 18 June 2024. Jack has discussed the impairment issue with the Chief Financial Officer, who said to Jack that
property prices frequently fluctuate. She recommended that it would be better to wait a few months to get an updated.

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