Assignment

This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory.

The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sure you do proper referencing, at least use 6 references, to be submitted the soft copy in Tumitin and hard copy in lecture Week 10. Please ensure you attach a KO1 assignment cover sheet, with ID numbers and signed. Late assignments will be penalised, 10% deduction per day.

part A:

1000 word short essay about the following:

At 30 June 2014, Longreach Ltd is considering undertaking an impairment test. Having only recently adopted the international accounting standards, the management of Longreach Ltd seeks your advice in relation to this test under AASB 136 Impairment of Assets.

Required

Write a report to management, specifically explaining:

1. the purpose of the impairment test

2. how the existence of goodwill will affect the impairment test

3. the basic steps to be followed in applying the impairment test.