ASIC raised concerns for Myer

Ahead of financial report.

The Australian Securities and Investments Commission (ASIC) has confirmed its involvement in Myer’s decision to write down the value of intangible assets by $515 million for the half year ended 27 January, 2018. In its half year results, Myer recorded a statutory net loss after tax of $476.2 million.

“ASIC had raised concerns on the value of Myer goodwill and brand name intangible assets in the company’s financial report for the full-year ended 29 July, 2017. This includes the reasonableness and supportability of the cash flow forecasts used in testing the assets for impairment,” a statement said.

“Myer has stated that it adopted lower cash flow forecasts in making the 27 January 2018 write down in the value of its assets. Myer also referred to the deterioration in trading during the first half of the 2018 financial year,” it continued.

ASIC also said it calls on preparers to focus on the quality of financial report information with the impairment of non-financial assets a focus in ASIC’s surveillance of financial reports.