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18-310MR Premier Investments writes down brand name assets
ASIC notes the decision by Premier Investments Limited (Premier) to write down the value of its casual wear brand name assets by $30 million in its financial report for the year ended 28 July 2018.
ASIC had raised concerns on the value of these assets in Premier’s financial report for the year ended 29 July 2017. ASIC questioned the reasonableness and supportability of royalty rate assumptions and sales growth forecasts used in testing the assets for impairment.
Premier has referred to the increasingly competitive retail landscape and structural changes impacting the apparel industry in Australia and New Zealand.
The impairment of non-financial assets remains a focus area of ASIC’s financial reporting surveillance program (refer: 18-159MR).