ASIC, the Australian Securities and Investments Commission, reviewed Viva Energy Group Limited's financial report for the year ended 31 December 2024 and raised concerns about its approach to impairment testing of convenience retail sites under AASB 136.
ASIC found that Viva Energy improperly assessed some sites as a group rather than individually. Viva Energy revised its approach and recognised $25 million of the total $558.8 million impairment expense as attributable to this change in accounting judgement for the year ended 31 December 2025.
ASIC reminded preparers that assets must be tested for impairment at individual asset level where possible. Public companies and their directors should review their impairment testing methodologies to ensure CGU groupings are properly justified.
ASIC's surveillance program actively examines financial reports for compliance with Australian Accounting Standards, and preparers must be able to demonstrate that group-level assessments are only used when individual asset recoverable amounts cannot be determined.
Non-compliance with AASB 136 can result in material misstatements in financial reports and potential enforcement action.
Full story ASIC Review Prompts Viva Energy $25M Impairment Adjustment | GovPing
Share this:
