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Avalon Telematics Ltd
No ratingHigh
FY2026
North America carrying value survives only on assumptions management concedes could move
The closing filing states that the unit carrying the acquired goodwill has limited headroom and that a one-point change in the discount rate would take the recoverable amount below the carrying amount.
“The recoverable amount of the North America unit exceeds its carrying amount by a limited margin, and a reasonably possible change of one percentage point in the discount rate would reduce the recoverable amount below the carrying amount.”
Line items: Intangible AssetsChange in Goodwill
Document reviewCost capitalisation policyconfidence high
High
FY2025
Auditor warns headroom may sit below management's calculation
The prior year's audit report names impairment testing a key audit matter and states that the headroom may be lower than the amount management calculated. The charge followed in the next year.
“The headroom in the impairment assessment of the North America unit may be lower than the amount management has calculated”
Line items: Intangible Assets
Document reviewCost capitalisation policyconfidence moderate
Medium
FY2026
Impairment indicators recorded for five years before the charge was taken
Net assets have exceeded market capitalisation at every balance date since 2021, which the filings themselves name an indicator of impairment; the charge was taken in the closing year.
“Net assets have exceeded the group's market capitalisation at each balance date since 2021, which is an indicator of impairment”
Line items: Intangible AssetsTotal Assets
Document reviewCost capitalisation policyconfidence high
Medium
FY2026
Impairment charge held outside the segment earnings used internally
The impairment is excluded from the measure reported to management, so the segment table shows earnings the group result does not.
“Segment earnings exclude the impairment of goodwill and intangible assets of 134.7 million”
Line items: Operating Income
Document reviewCompany-defined measureconfidence moderate
Low
FY2026
Banking facilities amended and extended against a working capital deficit
The closing audit report draws attention to facilities maturing within twelve months and to a net working capital deficit at the balance date.
“We draw attention to the amendment and extension of the banking facilities, which mature within twelve months of the date of this report, and to the net working capital deficit at the balance date.”
Line items: Current LiabilitiesCurrent Assets
Document reviewGoing-concern statementconfidence high
Low
FY2024
Contract costs are capitalised and amortised over the contract term
The policy is disclosed in the filings and is unchanged across the years read.
“Contract acquisition costs are capitalised and amortised over the term of the contract they were incurred to obtain.”
Line items: Operating Cash Flow
Document reviewconfidence moderate
Showing 6 of 12 · a finding rests on figures this study published, a quoted passage, or bothTypologies: Cost capitalisation policy · Provision or reserve judgement · Cash flow classification · Company-defined measure · Going-concern statement · Governance · Restatement