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4/11/2018 ASIC watches Myer book value THE AUSTRALIAN ASIC watches Myer book value The value of Myer's goodwill has been a contentious issue. Picture: AAP ELI GREENBLAT THE AUSTRALIAN 2:14PM March 28, 2018 The corporate regulator has publicly acknowledged that it approached troubled department store chain Myer about the $1 billion book value of its goodwill and brand name intangibles before its recent interim loss. The retailer last week booked $524.5 million in impairments as it revealed a half-year loss of $476.22 million - its biggest loss in more than 100 years of operations. The above extract from a newspaper article identifies ASIC (the regulator) as having concerns about whether Myer Ltd has been complying with the requirements of AASB 136 Impairment of Assets in prior accounting periods. Required: 1. With reference to AASB 136 discuss factors which would have contributed to ASIC's belief that asset impairments were necessary in prior periods. 2. Explain how are asset impairments calculated and identify potential explanations for Myer Ltd reporting a minimal asset impairment in its 2017 financial report. 3. Discuss the incentives that are potentially impacting management decision making on the recognition of asset impairments Show transcribed image text