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19-060MR Yellow Brick Road writes down intangible assets
ASIC notes the decision by Yellow Brick Road Holdings Limited (Yellow Brick Road) to write down goodwill and other intangible assets of its Lending Cash Generating Unit (Lending CGU) in its financial report for the half-year ended 31 December 2018.
ASIC had raised concerns about the reasonableness and supportability of revenue growth forecasts used in testing the Lending CGU assets for impairment for Yellow Brick Road’s financial report for the year ended 30 June 2018 having regard to performance, market conditions and industry risks.
As outlined in ASIC media release 18-364MR Major financial reporting changes and other focuses, the impairment of non-financial assets remains a focus area in ASIC’s surveillance of financial reports.