Evaluate the flexibility management has available in the determination of asset impairments

Background Accounting Standards & Regulations – 22420 – Spring 2017 ASR Assignment 1 (20%) You are a recent accounting graduate and have been employed in the Financial Reporting Unit of Myer Holdings Ltd, an ASX listed firm. Preparations are underway for the completion of the general purpose financial report for the year ended 29 July 2017 and you have been asked by the Chief Financial Officer to identify any major accounting issues which will need to be considered. Your attention is drawn to a media release by ASIC on 31 May 2017 (ASIC Media Release 17‐162) and this identifies areas of concern where attention will be directed in the ASIC surveillance program.

Not surprisingly given a recent academic paper1 ‘impairment of assets’ receives specific mention.

Required You are required to prepare a report for the CFO considering whether impairment of assets is an issue requiring address for the firm. The report should, with reference to AASB 136:

a) With reference to Myer outline what evidence is there that impairment testing of assets is necessary;

b) With reference to Myer outline the processes required to be addressed in determining any asset impairments that might be necessary

c) With reference to Myer outline the information needed in determining asset impairments

d) Evaluate the flexibility management has available in the determination of asset impairments .

Format Your assignment must be set out as a report with the four sections (a) (b) (c) (d) clearly shown. You must link your discussion to relevant accountings standards, including references to specific paragraphs. You must carry out independent research to complete this assignment and you must cite relevant academic (where relevant) and practitioner articles that support the material and views you present. Use Harvard style referencing.

Your report must be typed using 12 point font, 1.5 line spacing and 2.5 cm margins on all sides, with a maximum length of 1300 words (excluding references, executive summary and appendices). You do not need an introduction or conclusion. State the word count at the beginning of the assignment. Refer to the UTS Business School Guide to Writing Assignments (link below) on recommendations and suggestions on how to structure your report. All material (excluding executive summary, references and appendices) over 1300 words will be disregarded. https://www.uts.edu.au/sites/default/files/business‐writing‐guide‐2014.pdf A soft copy of your report is due to turnitin on Tuesday 29 August 2017 and a hard copy is to be handed in during your enrolled tutorial class.

Assignments submitted (soft and hard copies) after the due date may attract a penalty of 10% per day. Save your word document using your student number as the file name (don't forget to include your name and student number in the header of your word document!). Marking Guide Parts (a), (b), (c) and (d) are each worth 10 marks. In addition, presentation and communication are worth 10 marks combined. This gives a total mark of 50 for the report, which will be converted into a mark out of 20. Your report should address each of the parts equally. Attached is the marking scheme that will be used in marking your report. This report is worth 20% of your total subject marks. 1 Bond, D., Govendir, B. & Wells, P. 2016, 'An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136', Accounting and Finance, vol. 56, no. 1, pp. 259‐288 1 Attachment: Assignment marking matrix The criteria and weighting of each criterion used to mark your assignment are listed below:

Presentation and Communication (10 marks) Title Page Body/Discussion Accounting Standards & Regulations – 22420 – Spring 2017 Title of assignment, subject name, student number and name is given Other Body is organised into main sections and sub‐sections Sections and sub‐sections have appropriate headings Report organisation suits requirements Main issues relevant to the topic are explained Report is the correct length Correct formatting (i.e. font/spacing) Tables/graphs are used correctly (if appropriate) Writing Style Information flows logically; Report is easy to follow Paragraphs are well constructed Sentence structure is grammatically correct Tenses are used correctly and spelling is correct Referencing Content (40 marks) Grammar Statements made in‐text are referenced In‐text reference format is correct End‐text references format is correct Part A (10 marks) Evidence of asset impairment being necessary is identified and discussed. Part B (10 marks) Processes for determining asset impairments identified and discussed Part C (10 marks) Information needed to determine asset impairments is identified and discussed. Part D (10 marks) Flexibility management has in recognizing asset impairments is identified and discussed. 2 Well below acceptable