Research Report As a new accounting graduate you have recently joined the accounting department of an ASK listed company operating in the mining {extractive} industry. 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 58;me 300 index {www.asx300list.com]; The company must be in the 'Materials' sector you can identify all companies in this sector by sorting the list based on the third column of the table in the above website; The company must publish audited annual financial reports in English, fuliy complying with IFRS or AASB standards; The company must have a 30 June year end; and The company cannot be Evolution Mining Limited. Your manager, the CFO, has sent you an email containing a Media Release [MR] from the Australian Securities & Investment Commission {ASIC) in relation to Evolution Mining Limited [Evolution Mining), a listed entity in the same industry as the company that you are employed by. A link to the MP. is provided below: htl: :ffasic. ov.au/aboutasic/mediacentrelndamediareleasef2016releasesf16294mr-evolution-minin writesdownpajingominef The Audit Committee is aware that as well as Evolution Mining, numerous other companies in the same industry have also recently been investigated by ASIC in relation to asset valuations. The Audit Committee is also aware that ASIC Commissioner, John Price, was quoted as saying the following when announcing the focus areas for 30 June 2016 nancial reports: "Directors and auditors should continue to focus on values of assets and accounting policy choices. We continue to see companies use unrealistic assumptions in testing the value of assets...\" l161?4M R} To this end, the Audit Committee is keen to ensure that asset values are appropriately reected in the 30 June 2017 nancial statements of your company. You have been asked to undertake some research and prepare a report for presentation at the next meeting of the Audit Committee, to be held on 1 June 2017. Your report must address each of the following: a} The role ofASIC as a Corporate Regulator, specically in relation to their Financial Reporting Surveillance Program. In your discussion provide a summary of ASIC's ndings from their review of 31 December 2015 nancial reports in relation to asset values and impairment testing. {5 marks}. b} A critical analysis of some of the complexities and key issues involved in impairment testing for mining assets. In your analysis, refer to one or more publications issued by the 'Big 4' in relation to the mining industry. {15 marks}. c} Provide a detailed explanation of the impairment writedown made by Evolution Mining in the year ended 30 June 2016. Your explanation should include a discussion of the assetls that were impaired, the amount of the impairment writedown, the reason disclosed in the 30 June 2016 nancial report for the impairment writedown and relevant disclosures in the 30 June 2015 nancial report in relation to impairment testing {10 marks]. d] In relation to the company that you are employed by, identify ve specic issues that the Audit Committee should consider when reviewing the impairment calculations that will shortly be prepared by management. For each issue identied, explain how it is specically relevant to your company. Hint: You may wish to refer to table 3 of ASIC information sheet 'INFO 203 impairment of nonnancial assets: Materials for directors' for a list of matters that would be relevant to the Audit Committee. (10 marks}