Part I - Research based report (15%) As a student intern and future accountant, you have recently joined the accounting department of an ASX listed company. In their last meeting, the Board of Directors of your company has discussed ASIC's press release 19-143MR Major Financial Reporting Changes and other focuses for 30 June 2019 financial reports: https://asic.gov.au/about-asicews-centre/find-a-media-release/2019-releases/19-143mr-major- financial-reporting-changes-and-other-focuses/ Please copy and paste the above link in the browser for it to work The attachment to this press release contains the following item: Attachment to 19-143MR; Major financial reporting changes for 30 June 2019 reporting: 2. Impairment testing and asset values The recoverability of the carrying amounts of assets such as goodwill, other intangibles and property, plant and equipment continues to be an important area of focus. It is important for directors and auditors to ensure: a. cash flows and assumptions are reasonable having regard to matters such as historical cash flows, economic and market conditions, and funding costs. Particularly where prior period cash flow projections have not been met, careful consideration should be given to whether current assumptions are reasonable and supportable; discounted cash flows are not used to determine fair value less costs of disposal where forecasts and assumptions are not reasonable and supportable; c. cash flows used are matched to carrying values of all assets that generate those cash flows, including inventories, receivables and tax balances; d. discount rates and other key assumptions are reasonable and supportable; e. cash generating units (CGUs) are not identified at too high a level, including where cash inflows for individual assets are not largely independent; and f. for testing goodwill, CGUs are not grouped at a higher level than the operating segments or the level at which results are monitored for internal management purposes. Further information can be found in ASIC Information Sheet 203 Impairment of non-financial assets: Materials for directors (INFO 203)The Board was concerned about the company's reputational standing in the market if ASIC found any deviations from AASB requirements in this matter. They have, therefore, decided to have a review of the relevant disclosures and areas of concern in the company's annual report undertaken as recommended by ASIC. The Board also decided that the CFO would be responsible for this review. 51 2020 ACCG2024 Page 2 Based on the Board's request, the CFO asks you to draft a business research report addressed to the Board of Directors on the following: a. Summarise the disclosure requirements for impairment of non-financial assets as per AASB 136 (5 marks). b. Critically analyse to what extent the latest annual report of your company meets the disclosure requirements for impairment of the non-financial assets as per AASB 136 (10 marks). c. A critical analysis of some of the complexities and key issues involved in impairment testing. In your analysis, you can refer to one or more publications issued by the 'Big 4' firms, accounting professional bodies or academic journals (15 marks). d. In relation to the company that you choose, identify four specific issues that the Directors should consider when reviewing the impairment calculations that will shortly be prepared by management. For each issue identified, explain how it is specifically relevant to your company. Hint: You may wish to refer to table 3 ASIC Information Sheet 203 Impairment of non-financial assets: Materials for directors (INFO 203) (10 marks). To complete this assignment, you will need to select a suitable company yourself that meets the following criteria: The company must be a constituent of the S&P/ASX 300 index (www.asx300list.com); . The company must publish audited annual financial reports in English, fully complying with IFRS or AASB standards and The company must have a 30 June year end. . Choose the latest annual report, no earlier than 30 June 2019