Summarize the disclosure requirements for Impairment as per AASB 136

Research Based Case Study and Report: Financial Reporting Disclosures in the Australian Corporate Sector As a new accounting graduate, you have just joined the financial reporting unit of a listed company* when your manager, the Chief Financial Officer (CFO), approaches you with your first task. In their last meeting, the board members of your company is concerned about the company's reputational standing in the market relating to the quality of financial information in the annual report and keen to ensure that asset values are appropriately reflected and disclosed in the company's latest annual report. Therefore, the Board decided to have a review of the relevant treatments and disclosures in the company's latest annual report pertaining to impairment and whether these treatments and disclosures are aligned with the requirements for impairment as per AASB 136. Required: Based on the Board's decision, the CFO asks you to draft a business research report addressed to the Board of Directors on the following: a. Summarize the disclosure requirements for Impairment as per AASB 136 (5 marks). b. Critically analyse to what extent the latest annual report of your company meets the disclosure requirements for Impairment as per AASB 136 (10 marks). c. A critical analysis of some of the complexities and key issues involved in impairment testing. In your analysis, you can refer to one or more publications issued by the ‘Big 4’ firms, accounting professional bodies or academic journals (10 marks). d. In relation to the company that you choose, identify four specific issues that the Directors should consider when reviewing the impairment calculations that will shortly be prepared by management. For each issue identified, explain how it is specifically relevant to your company. Hint: You may wish to refer to table 3 of ASIC information sheet ‘INFO 203 Impairment of non-financial assets: Materials for directors’ for a list of matters. (10 marks). *You need to choose a suitable company by yourself from: 1. is constituent of the S&P/ASX 300 index (www.asx300list.com); 2. publishes audited annual reports in English, fully complying with IAS/IFRS or AASB; and 3. does NOT belong to the financial sector.