Valuation for impairment testing (AASB136)
The need for valuation impairment testing Purchased goodwill reflected on the balance sheet of an ASX company is required by AASB136 to be recorded at an amount which is no more than recoverable amount. The goodwill of each Cash Generating Unit [“CGU”] must be...
Conversion rights and ‘free’ options (AASB9 financial instruments)
The need for conversion rights and ‘free’ options An unlisted mining and exploration company developed a capital structure characterised by vanilla (ordinary) equity and several tranches of convertible notes. Over its development history, the company...
Executive long term incentive plan (AASB2 Share based payment)
The need for an executive long term incentive plan Each year, an ASX300 company offers an executive long term incentive plan [“ELTIP”] to its senior executive team as part of their remuneration package. This is commonplace and ELTIP is one of three remuneration...