Work out the following accounting tasks

Within your firm’s latest annual report
(i) From your firm’s annual report find out the asset/s that your firm has tested for
impairment.
(ii) How did your firm conduct the impairment testing?
(iii)Has your firm recorded any impairment expenditures during the period?
(iv)Identify the key estimates and assumptions used by your firm in conducting the
impairment testing.
(v) Do you find any sort of subjectivity involved in the impairment testing process? How
can this subjectivity influence the outcome of the impairment testing?
(vi)What do you find interesting, confusing, surprising or difficult to understand about the
impairment testing?
(vii) What new insights, if any, have you gained about how companies conduct
impairment testing?
(viii) Based on your assignment, comment on the “fair value measurement”.

Requirements
(i) Explain why the chairperson of the IASB believes that the former accounting standard for
leases did ‘not reflect economic reality’?
(ii)Explain the reason why, under the former accounting standard, reporting entities’ ‘off
balance sheet lease liabilities were up to 66 times greater than the debt reported on their
balance sheet’.
(iii) Why does the Chairperson of the IASB argue that under the former accounting standard
for leases there was ‘no level playing field’ between some airlines companies?
(iv) Why do you think the Chairperson of the IASB said that the new accounting standard for
leases ‘will not be popular with everyone’? What would cause this unpopularity?
(v) What are some of the possible reasons why the chairperson of the IASB would say “the
new visibility of all leases will lead to better informed investment decisions by investors, and
to more balanced lease versus buy decisions by management?

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