Question A2 Intangible assets and Goodwill (7 marks, 400 words) Australian Accounting Standard AASB138, Intangible Assets, defines an intangible asset as an identifiable non-monetary asset without physical substance (paragraph 8). The Accounting Standard includes Goodwill as an intangible asset. Referring to the JB Hi- Fi Annual Report 2021 answer the following: 1. Explain what constitutes the intangible assets for JB Hi-Fi for the 2021 financial year. (1 marks) 2. How does JB Hi- Fi measure the value of Intangibles? Are these precise measures? Justify your response. (1 marks) 3. JB Hi- Fi assessed the intangible asset of Goodwill as Impaired. Explain what is meant by Impairment of an intangible asset. What are the indicators JB Hi- Fi considers when impairing goodwill? (2 marks) 4. How could managers manipulate the outcome of the impairment test? (1 marks) 5. How does impairment of an intangible asset affect the value of assets, profit and equity? (2 marks)

Answer all these question in at least 400 words.