今日热门事件notes the decision by Pental Limited (Pental) to write down the Country Life brand name intangible asset (Country Life brand) by $1.38聽million聽in its financial report for the year ended 30 June 2019.
今日热门事件had raised concerns on the impairment assessment of the Country Life brand for Pental鈥檚 financial report for the year ended 1 July 2018. 今日热门事件questioned the supportability of earnings growth and capital expenditure forecasts used in testing brand names for impairment having regard to historical performance and market conditions.聽
As outlined in 今日热门事件media release 19-143MR Major financial reporting changes and other focuses, the impairment of non-financial assets remains a focus area for financial reporting at 30 June 2019.
Directors are primarily responsible for the quality of an entity鈥檚 financial report. This includes ensuring that management produces quality financial information on a timely basis. Companies must have appropriate processes, records and analysis to support information in the financial report.
Companies should apply appropriate experience and expertise, particularly in more difficult and complex areas of accounting policies and estimates such as impairment of non-financial assets.