AC Pit-Stop: Valuation and the Impairment Imperative

AC Pit-Stop: Valuation and the Impairment Imperative
Audit Committees (ACs) play an important role in the financial reporting process and should question the need for, and adequacy of, asset impairment and the adequacy of related disclosures. ACs also need to critically assess whether management and staff have adequate skills to deal with impairment issues.


Impairment testing often relies on estimating the value of assets by discounting estimated future cash flows using appropriate discount rates. Given the subjectivity of elements of impairment calculations, disclosures concerning uncertainties and key assumptions are generally important to users of financial reports. As such, ACs have a duty to ensure that the information in the financial report is consistent with their knowledge of the company’s financial position and affairs while bearing in mind their knowledge of the business, the assets, the environment in which the company operates, and the future prospects of the business.

In this respect, they should question the company’s approach to impairment testing, particularly where there is a risk that assets may be materially impaired. This session sets out some ways that they can do that. It is not a checklist. Rather, it is a resource that can be referred to (as relevant) according to the circumstances.

At this Pit Stop, ACs will learn:

  • how to assess the reasonableness of the assumptions used in calculations prepared by management or experts;
  • whether the assets are material;
  • how to assess the level of expertise of management and staff in the area of impairment;
  • how to assess the appropriate use of external experts; and
  • how the performance of the company and the environment in which it operates may affect the recoverability of the value of assets through operating activities or the sale of those assets.


CPD Hours : 2

SID Member:   S$60.00 (excl. GST) 
  S$64.20 (incl. GST) 
   
Non-SID Member:   S$90.00 (excl. GST)
  S$96.30 (incl. GST) 


SID Corporate Member may utilise their complimentary vouchers.



Terms and Conditions for SID Courses/Events
When
11/27/2018 9:00 AM - 11:00 AM
Where
SAC Board Room 10 Anson Road, International Plaza, #05-18, Singapore 079903
 

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