Wednesday, 9 December 2009 
 
The Institute of Chartered Accountants in Australia (the Institute) has released analysis which reveals that $10.9bn worth of assets were lost in 2009 due to a decline in fair value and impairment of assets. The research, released today, forms part of a guidance document which also focuses on the challenges for the 2010 reporting season.  
 
“Fair value, impairment, and going concern assessment are still important areas to consider, even with what appears to be the worst of the economic downturn behind us. However, 2010 will present new challenges, including, impairment reversals, changes to accounting standards and commodity price volatility that preparers of financial reports, directors, audit committees, auditors and users themselves will need to be aware of,” said the Institute’s General Manager of Leadership and Quality, Lee White.  
 
“Ethical and professional obligations for accountants will also be focus areas for 2010,” Mr White said.  
 
In preparing this guidance the Institute undertook analysis of previous reporting periods, current international developments and extensive communication with all parties directly involved with financial reporting and auditing. The Institute also analysed the top 30 Australian listed entities[1] to investigate the impact fair value and asset impairment had on reporting profits for the financial year end 30 June 2009.  
 
“The biggest decline in fair value was felt in the investment properties sector, this was followed by the insurance and real estate industries. Likewise the number of modified financial reports has increased amplifying the uncertainty over this period,” Mr White said.  
 
The Institute is committed to providing the broader business community, including boards and audit committees, with dedicated tools and guidance in order for them to conduct their roles as leaders in the business community.  
 
Essential guidance for 2009 year end is available at http://www.charteredaccountants.com.au//files/documents/1109-11_End_of_year_Guidance_factsheet_5.pdf  
 
"The Institute is focused on a forward-looking, market based agenda and will continue to provide guidance to members and the wider business community in this regard," Mr White said. 
 
Ends 
 
Media enquiries please contact 
Ben McAlary 
Institute of Chartered Accountants in Australia 
02 9290 5586 / 0417 351 724