In the current time period in most of developed and developing nation’s main emphasis is given on improving reporting standards. In the current report detail discussion is carried out on the ASIC and its financial reporting surveillance program. Apart from this, in the report key issues in respect to mining impairment are discussed in detail. Along with this, assets that are impaired up to specific value in context of financial reporting surveillance program are discussed briefly. At end of the report, five issues that need to be consider in respect to valuation of assets are discussed briefly. At last conclusion section is formed in the report.
ASIC is known as the regulatory body of the stock market in the Australia. Role that ASIC play in relation to financial reporting surveillance program is given below.
Findings of ASIC from financial reporting surveillance program
There are number of issues and complexity that are associated with the impairment of mining assets. Some of them are explained below.
Relevant non-current assets were impaired by the business firm same were valued at 77330. Goodwill are impaired at 35270. In order to impair non-current assets estimate of recoverable amount from CGU was made by the business firm. Each and every mine that business firm have is assumed as separate unit. Due to decline in the gold price in international market value of mines reduced substantially. In the FY2016 Pajingo asset was impaired to specific value. Entire details are obtained from the annual report of 9th disclosure critical estimates, judgments and errors.
On the basis of above discussion it is concluded that it is very important to use appropriate approach for impairment of asset. This is because if appropriate approach will be used then in that case assets can be valued at fair price and true financial position will be reflected by the balance sheet. It is recommended that management must use varied models to do valuation of the asset. On the basis of output received from varied assets valuation model final decision must be made by the managers.;
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