AASB Assignment Essay Example

4AASB Assignment

AASB 3 & 10 Analysis

Introduction & Company Background

NuEnergy Gas Limited is ASX listed gas and ancillary power generation development firm that has direct interest in the establishment of unconventional gas production within Indonesia.

New Hope Group is Australian-based firm that operates diversified energy-related activities that is situated in South East Queensland. It has significant interests in such important operations as coal mining; exploration, oil and innovative technologies amongst other things. It positioned within 100 largest ASX listed companies in terms of market capitalisation.

The focus of this paper is on examining the financial statements related to NuEnergy Gas Limited and New Hope Group; both of which operate within the Australian energy sector. The paper examines whether each of these two companies have adhered to the stipulations put forth in AASB 3 and 10. A brief summary of the goodwill method adopted; revaluation of assets; impairment of goodwill; non-controlling interests and sharing of any goodwill be all be conducted to determine these strengths and weaknesses in reporting for these two companies.

Goodwill, Impairment, Revaluation of Assets, NCI & Sharing of Goodwill

For New Hope Group, goodwill is included within intangible assets and investments in associates. It is not armotised at all but rather carried at cost minus possible accumulated losses. It is apportioned to cash-generating units for the sake of impairment testing. In regards to impairments, goodwill that possess indefinite useful lives are never subjected to amortisations are tested on an annual basis for impairment purposes. The firm does not provide pertinent information related to non-controlling interests, sharing of goodwill and revaluation of assets.

NuEnergy Gas Limited does not provide any useful information related to any of the aforementioned aspects. In fact, it does not seem to recognise the possibility of goodwill and its overall impairment process altogether.

Strengths and Weaknesses

AASB 10 requires that an entity, which controls one or more other entities be able to provide consolidated financial statements and, also sets to apply the principle of control amongst all its subsidiaries.

AASB 3 seeks to ensure that businesses recognise and measure within their overall financial statements the identifiable assets that have been acquired; liabilities that are incurred as well as any possible non-controlling interests and, also the measurement of goodwill.

While it is true that both of these companies have ensured to adhere to stipulations put forth in AASB 10; only New Hope Group has adhered to AASB 3, which means that the company has made stringent efforts to present an all-inclusive and detailed report.

Conclusion & Recommendation

The paper has successfully found out that even though New Hope Group and NuEnergy Gas Limited both operate within the energy sector; only New Hope Group has been able to adhere to both AASB 3 and 10 respectively. It is thus recommended that NuEnergy Gas Limited make efforts to provide pertinent and open information related to goodwill measurement; share and impairment in accordance with AASB 3 in future reporting periods.


New Hope Group 2016 Annual report . Retrieved from http://www.newhopegroup.com.au/files/files/2016%20Annual%20Report%20New%20Hope%20Corporation%20Limited.pdf

NuEnergy Gas Limited 2016 Annual report. Retrieved from http://www.nuenergygas.com/files/6914/7512/9320/2016_NGY_Annual_Report_-_FINAL__SIGNED.pdf

New Hope Group

Student’s Name

NuEnergy Gas Limited

Student’s Name 1