The Impact of Assets Impairment on Company Accounts
The Impact of Assets Impairment on Company Accounts
Assignment 1
ACCT 20054 – Company Accounting
Term 2, 2012
Prepared & Submitted by
Jobish Mathew
S0214315
Tutor: Davood Alizadeh
Due date: 24th August 2012
Submitted date: 24th August 2012
Executive Summary
The study ‘The Impact of Assets Impairment on Company Accounts’ presents the cotemporary issues facing by major five Australian companies Qantas, Ten Networks, Billabong, Bluescope steel and Harvey Norman. This research mainly deals with controversies surrounding the recent introduction and application of ‘fair value’ measurement system by the IASB and AASB. The author refers an article written by Adele Ferguson published in ‘The Age’ newspaper on 14th june 2012. This article refers the possible assets write downs by many Australian companies. And it also refers the Australian accounting standard and possible measures AISC (Australian Securities and Investment Commission).
This research also analyses the five companies’ annual report and make information related to market capitalisation, book value, share price movement and so on. The tables and graph provide great detailed comparisons between those companies. Further, the study examines whether the companies have done any impairment of their assets. The report also analyses how the companies have done the impairment and why they have done.
The study also examines each individual asset class reported by the companies and the valuation principles followed by the companies. Moreover, the report mentions how the anomalies between companies are going to affect the users/analysts.
Finally, the research discuss how ASIC going to enforce the accounting standard on companies and the role of auditors in this exercise.
Introduction
Consistent falls in share price and market capitalisation are the main contemporary issues of many Australian companies. This research tries to go through the details of these current issues.
Assignment 1
ACCT 20054 – Company Accounting
Term 2, 2012
Prepared & Submitted by
Jobish Mathew
S0214315
Tutor: Davood Alizadeh
Due date: 24th August 2012
Submitted date: 24th August 2012
Executive Summary
The study ‘The Impact of Assets Impairment on Company Accounts’ presents the cotemporary issues facing by major five Australian companies Qantas, Ten Networks, Billabong, Bluescope steel and Harvey Norman. This research mainly deals with controversies surrounding the recent introduction and application of ‘fair value’ measurement system by the IASB and AASB. The author refers an article written by Adele Ferguson published in ‘The Age’ newspaper on 14th june 2012. This article refers the possible assets write downs by many Australian companies. And it also refers the Australian accounting standard and possible measures AISC (Australian Securities and Investment Commission).
This research also analyses the five companies’ annual report and make information related to market capitalisation, book value, share price movement and so on. The tables and graph provide great detailed comparisons between those companies. Further, the study examines whether the companies have done any impairment of their assets. The report also analyses how the companies have done the impairment and why they have done.
The study also examines each individual asset class reported by the companies and the valuation principles followed by the companies. Moreover, the report mentions how the anomalies between companies are going to affect the users/analysts.
Finally, the research discuss how ASIC going to enforce the accounting standard on companies and the role of auditors in this exercise.
Introduction
Consistent falls in share price and market capitalisation are the main contemporary issues of many Australian companies. This research tries to go through the details of these current issues.