Testing of Impairment of Intangible Assets: In this regard evaluation of the impairment of intangible assets as per the financial statement as prescribed by AASB 138 and AASB 136, it should have been considered that the assets are carried at recoverable value but not more than that value respectively for which the impairment test is required effectively and efficiently by the finance manager and accountant. Westpac group should have to require for impairment test for its intangible assets to review of financial statement (Banker et al. 2016, p.231). The accountant must recognize the impairment of the asset as impairment loss which should be debited to account for impairment loss and to be credited to intangible assets account as per accounting standards.
At the time of preparing the financial income statement and balance sheet, such steps were followed by an accountant for which accurate accounting for intangible assets was done and reflected in the balance sheet (Healy, 2016, p.530).
Different indications of impairment of intangible assets such as if the market value of assets decreases, maximization of the rate of interest, the value of net assets is more than the capitalized value are the external sources of impairment. Internal sources of impairment such as the worst performance of assets, carrying some such assets are more than its fair value, or physical damage of assets are the criteria for impairment loss of assets as discussed in AASB 138 (Small et al. 2016, p.16).
Disclosure of Intangible assets as per AASB 136 and 138: In this regard an organisation should have to consider the regulations as per AASB 138 and 136 regarding disclosure of intangible assets, that the finance manager and accountant should have to evaluate that whether the criteria for disclosure of intangible assets are fulfilled or not in an appropriate manner.
Disclosure of intangible assets should have three main parts such as disclosure for the class of assets, disclosure for the reportable segments of the company and other disclosures. Westpac banking group also revealed these criteria at the time of accounting for intangible assets and impairment of loss effectively (Bond et al. 2016, p.155). Disclosure should have to be represented with detailed information regarding recognition of impairment loss in profit and loss account or valuation of intangible assets in the Balance Sheet, recoverable value or fair value of intangible assets and whether future economic benefits are gained or not from those intangible assets should have to be represented in disclosure.
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