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In the 22-124MR, ASIC raised concerns about the assessments of the recoverability of the carrying values of assets, including goodwill and property, plant and equipment.

You were lucky to get an internship with the Australian Securities & Investments Commission's (ASIC) Financial Reporting Surveillance Program that aims to improve the quality of financial reporting by reviewing the annual financial reports of a selection of listed companies and other significant entities, to monitor compliance with the Corporations Act and Australian Accounting Standards.

The Head of the Financial Reporting Surveillance Program (your boss for the time of your internship), Zachary King* , plans for the next review round to focus on the quality of financial information in the annual reports of listed companies to ensure that asset values are appropriately reflected and disclosed in these companies latest annual reports. For preliminary research into this matter, he asks you to provide a report which highlights the current compliance with AASB136 Impairment of Assets by one listed company in this regard. For this, you must research into a listed ASX300 company of your choice and write a report addressing the following:

a. A critical analysis of some of the complexities and key issues involved in impairment testing especially in light of the COVID-19 pandemic. In your analysis, you can refer to one or more publications issued by the Big 4 firms, accounting professional bodies or academic journals.

b. Provide a detailed explanation of the impairment write-down(s) made by your chosen company in the year ended 30 June 2021. Your explanation should include a discussion of: i. the asset/s that were impaired; ii. the type of estimations required to record the impairment; iii. the amount of the impairment write-down; and iv. relevant disclosures in the 30 June 2021 financial report in relation to impairment testing.

c. Based on your findings in part b, discuss how the treatments and disclosures for impairment for the year ended 30 June 2021 meet the fundamental characteristics of financial reporting as per the Conceptual Framework?

The company I chose is Qantas Airways Ltd.

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