ASIC notes the decision by Seven West Media Limited (Seven West) on 15 February 2017 to write down its investment in Yahoo7 by $75.5 million in its financial report for the half-year ended 24 December 2016.

ASIC reviewed Seven West’s financial report for the year ended 25 June 2016, as part of its ongoing financial surveillance program.  That review led ASIC to raise concerns regarding the carrying amount of the Yahoo7 investment.

As outlined in ASIC media release 16-428MR (ASIC calls on preparers to focus on useful and meaningful financial reports), impairment testing and asset values remains a focus area of our financial reporting surveillances.