ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.
18-087MR Myer writes down intangible assets
ASIC notes the decision by Myer Limited (Myer) on 21 March 2018 to write down the value of its goodwill and brand name intangible assets by $515 million in its financial report for the half-year ended 27 January 2018.
ASIC had raised concerns on the value of these assets in Myer’s financial report for the full-year ended 29 July 2017, including the reasonableness and supportability of the cash flow forecasts used in testing the assets for impairment.
Myer has stated that it adopted lower cash flow forecasts in making the 27 January 2018 write down in the value of its assets. Myer also referred to the deterioration in trading during the first half of the 2018 financial year.
As outlined in ASIC media release 17-162MR, ASIC calls on preparers to focus on the quality of financial report information, the impairment of non-financial assets remains a focus in ASIC's surveillance of financial reports.