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19-074MR Pro-Pac Packaging writes down goodwill
ASIC notes the decision by Pro-Pac Packaging Limited (Pro-Pac) to write down the goodwill of its Industrial and Flexibles cash-generating unit (Flexibles CGU) by $149 million in its half-year financial report to 31 December 2018.
ASIC had raised concerns on the impairment assessment of the Flexibles CGU in Pro-Pac’s financial report for the year ended 30 June 2018. ASIC questioned the supportability of sales growth forecasts used in testing goodwill for impairment having regard to historical performance and market conditions.
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.