Reference no: EM132616206

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:

Problem 1: With reference to AASB 136 discuss factors which would have contributed to ASIC's belief that asset impairments were necessary in prior periods.

Problem 2: Identify potential explanations for Myer Ltd reporting a minimal asset impairment in its 2017 financial report.

Problem 3: Discuss the incentives that are potentially impacting management decision making on the recognition of asset impairments Show transcribed image text