media release (22-047MR)

Buddy Technologies writes down intangible assets


Buddy Technologies Limited (Buddy) has written down the intangible assets of its consumer lighting business by $44.8 million in its financial report for the half-year ended 31 December 2021. ASIC reviewed Buddy’s financial report for the year ended 30 June 2021.

As part of its financial reporting surveillance program, ASIC raised questions about Buddy’s consumer lighting business, in particular:

  • using optimistic forecasts of revenue growth to value goodwill (70% for 2022), despite reporting negative revenue growth in 2021, and
  • the disclosure of Buddy’s operating segments, where no goodwill had been allocated to the Consumer Business segment.

Buddy’s write down is a result of adopting significantly reduced forecast revenue growth rates.

As outlined in ASIC media release 21-342MR ASIC highlights focus areas for 31 December 2021 financial reports under COVID-19 conditions, key assumptions used to estimate asset values should be realistic, having regard to both actual performance and the ongoing economic and market uncertainties.


ASIC’s financial reporting surveillance program aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law. This supports investor confidence and the integrity of Australia’s capital markets.

ASIC conducts regular reviews on a risk-basis of the financial reports of selected listed companies and other significant public interest entities to monitor compliance with the Corporations Act and Australian Accounting Standards. ASIC alerts the market prior to each reporting season about current topics or issues that will be the focus of the reviews.

Media enquiries: Contact ASIC Media Unit