Essays on The Disclosure Measures of AGL Energy Limited and Origins Energy Case Study

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The paper 'The Disclosure Measures of AGL Energy Limited and Origin’ s Energy" is a perfect example of a finance and accounting case study.   Goodwill is recognized as an intangible asset whose resulting impairment in carrying cost being charged to the consolidated statement of comprehensive income. The carrying amounts of Origin Energy Ltd assets, other than derivatives, inventories, the environmental scheme as well as the deferred tax assets are comprehensively reviewed during each time of go reporting date to determine if there is any indication of impairment. The presents of the indication exist, the asset’ s other assets are adversely recoverable amount is estimated, as discussed below for all assets except exploration and evaluation assets which are discussed in note 1(H).

An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its recoverable amount. Impairment losses are recognized in the income statement. In the case of the two companies(Origin Energy Ltd Annual Report, 2014), goodwill is reflected cash-generating units (CGUs) where the correct value of impairment can be tested and identified from the intangible assets.

The amount exceeding the carrying amount assets recoverable amount is considered a loss of impairment and it is credited in the account of Cash Generating Units. In assessing the impairment, both AGL Energy limited and Origin Energy Ltd observes the disclosure policies of Australian Accounting Standard Board (3 and 10) in disclosing the amortization and impairment of goodwill. This is shown in the financial statement below; Non-controlling interests Non-Controlling Interest treatment in the consolidated accounting statements is defined by the Australian Accounting Standards. Non-controlling Interest is identified in the current accounting comprehensive income statement, the share capital and general reserves at the period of the acquisition date of the subsidiaries by the parent company.


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