ASIC has noted the decision by ASX-listed Ashley Services Group Limited (Ashley) to make a $55.8 million impairment charge relating to its training division in its financial report for the half-year ended 31 December 2015.

ASIC reviewed Ashley's financial report for the year ended 30 June 2015 as part of its ongoing financial reporting surveillance program and made inquiries about the recoverability of Ashley's goodwill for its training division.

As outlined in ASIC media release 15-331MR Focus for 31 December 2015 financial reports, impairment testing and asset values remain a focus area of our financial reporting surveillances. ASIC reminds companies and those involved in preparing and approving financial reports that future cash flows reflected in the calculation of a value in use must be based on reasonable and supportable assumptions.