Criteria Full Marks High Distinction (80-100%) Distinction (70-79%) Credit (60-69%) Pass (50-59%) Not Satisfactory (0-49%)

Criteria Full Marks High Distinction (80-100%) Distinction (70-79%) Credit (60-69%) Pass (50-59%) Not Satisfactory (0-49%)

Clear presentation of the Information 10 points 9 points7.5 points 6.5 points 5.5 points3.5 points or less

Uses succinct, accurate sub- headings to add clarity and direction for both the reader and the writer.

Font is Arial, 11 point; use 1.5 line spacing; leave a margin on all four edges of each page of at least 2.5cm top and bottom and 3.2 cm left and right margins; number pages in a consistent place on the page; accompanied by a properly completed Cover Sheet (Assessment Declaration). Uses sub-headings to add clarity and direction for both the reader and the writer.

Minor errors in structure/font/space/margin/page number. Uses a few sub-headings to add clarity and direction for both the reader and the writer.

Several errors in font/space/margin/page number. Uses a few sub-headings which contribute minimally to clarity and direction for both the reader and the writer.

Demonstrates an attempt to use suggested presentation of report. Limited or no use of subheadings.

Disregard suggested presentation of report.

Introduction 10 points 9 pointsIntroduction provides comprehensive information about the company including identification of a reporting entity. 7.5 points

Introduction provides excellent information about the company including excellent identification of a reporting entity. 6.5 points

Introduction provides good information about the company including some identification of a reporting entity. 5.5 pointsIntroduction provides average information about the company including identification of a reporting entity. 3.5 points or less

Introduction provides no information about the company including identification of a reporting entity.

Issues 5 points 4.5 pointsA comprehensive identification of accounting problem(s) 3.75 points

An excellent identification of accounting problem(s) 3.25 points

A good identification of accounting problem(s) 2.75 points

Problem(s) identification misses some important points. 1.75 points or less

Unable to identify major problems

FINANCIAL REPORTING REQUIREMENTS

Assess the measurement and recognition consistency of AASB138 Intangible Assets with the AASB Framework.

Use the measurement and recognition criteria of AASB138 Intangible Assets and AASB 136 Impairment of Assets to critically discuss the accounting policies of the company.

50 points 45 points

Discussed the measurement and recognition requirements.

Work demonstrating to an outstanding degree. 37.5 points

Discussed the measurement and recognition requirements. Work demonstrating extensive knowledge and understanding of major content areas and issues 32.5 points

Discussed the measurement and recognition requirements. Above average work demonstrating good knowledge and understanding of major content areas and issues 27.5 points

Discussed the measurement and recognition requirements.

Work of average standard which demonstrates an average comprehension both of basic concepts and some issues. 17.5 points or less

Discussed the measurement and recognition requirements. Work which shows no evidence of knowledge or understanding of the subject matter.

Recommendation

Use the disclosure requirements of AASB 138 and AASB 136 to recommend the changes required in the disclosure of the company.

20 points 27 points

Provided outstanding recommendation about the measurement and recognition disclosure provided by the company in compliance with the relevant accounting standard. 22.5 points

Provided reasonably well recommendation about the measurement and recognition disclosure provided by the company in compliance with the relevant accounting standard. 19.5 points

Provided appropriate recommendation about the measurement and recognition disclosure provided by the company in compliance with the relevant accounting standard 16.5 points

Some inappropriate recommendation; difficult to understand at times. 7.5 points or less

Work which shows no evidence of knowledge or understanding of the subject matter.

Referencing

5 points 4.5 points

Applies correct referencing Harvard throughout, including in footnotes and bibliography. 3.75 points

Applies correct referencing Harvard throughout, including in footnotes and bibliography, with occasional minor errors. 3.25 points

Applies correct referencing Harvard throughout, including in footnotes and bibliography, with several minor errors 2.75 points

Applies Harvard just at an acceptable standard for an introductory unit. 1.75 points or less

Shows several deficiencies in Harvard application and/or fails to submit a bibliography or complete footnotes.

BAO55225 Corporate and Financial Accounting

Individual Case Study oOh!Media (15%)

oOh!Media is a leading Out of Home media company that is enhancing public spaces through the creation of engaging environments that help advertisers, landlords, leaseholders, community organisations, local councils and governments reach large and diverse public audiences. The Companys extensive network of more than 35,000 digital and static asset locations includes roadsides, retail centres, airports, train stations, busstops, office towers and universities. Listed on the ASX, oOh! employs around 800 people across Australia and New Zealand, with revenues of $592 million in 2022. The Company invests strategically in technology, and is pioneering sophisticated data techniques that enable clients to maximise their media spend through unrivalled and accurate audience targeting.

Find out more at https://oohmedia.com.au/The following extracts are taken from oOh!Medias annual report 2022.

Accounting policy: Intangible assets

Goodwill

Goodwill represents the excess of the purchase consideration over the fair value of the identifiable net assets acquired. Goodwill acquired in business combinations is not amortised. Instead, goodwill is tested for impairment annually, or more frequently, if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units for impairment testing. Refer to Note 15 Non-current assets for further information.

Licences

Licences represent the rights and relationships associated with acquired site leases and the associated new business revenue streams. Licences are amortised over their expected useful life.

Software

Software acquired by the Group and has a finite useful life is measured at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is calculated to write-off the cost of intangible assets less estimated residual values using the straight-line method over their estimated useful lives and is recognised in the consolidated statement of profit or loss and comprehensive income. The estimated useful lives are as follows: - Licences 11-15 years; - Brands 2-15 years; and - Software 3-7 years. Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Goodwill (Cash Generating Units)

The recoverable amount of the goodwill allocated to the Groups CGUs was determined using the fair value less costs to sell approach. This was determined by discounting five years of future cash flows expected to be generated from the continuing use of the units followed by a terminal value, less the notional cost of disposing of the assets. For the year ended 31 December 2022, the carrying value of assets allocated to each CGU is supported by their recoverable amount and no impairment loss was recorded.

The key assumptions of the impairment testing are:

Annual revenue based on the latest management forecast of post-COVID recovery and share gains from other media for the next twelve months, plus normalised compound annual growth rates from 2023 to 2027 for Australia of 7.6%, New Zealand of 10.0%, and 6.2% for Cactus

EBITDA margins improving based on revenue growth assumptions, assessing lease renewal outcomes, and other cost increases in line with expected CPI

Terminal growth rate: Australia and New Zealand 3.0%, and Cactus 2.0%

Discount rate post-tax: Australia 10.1% (2021: 9.8%), New Zealand 11.6% (unchanged from 2021), Cactus 11.9% (2021: 11.8%)

Managements best estimate of the impact of future trends in the media industry is based on historical and projection data from both external and internal sources. These assessments include assumptions for structural growth in the Out of Home industry, which is in line with the OMAs January 2023 published projection of industry revenue growth of 9% CAGR over this period, and a stretch goal of 11% CAGR.

Sensitivity analysis undertaken on the abovementioned assumptions indicates that no reasonably possible change would result in an impairment.

Impairment of assets: Non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Fair value less costs of disposal is based on the estimated future cash flows, discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. The carrying value of assets allocated to each CGU is supported by their recoverable amount.

Please read oOh!media Annual Report 2022 about the disclosure of Intangible Assets and impairment testing.

Required:

Use the case analysis document to analyse the case covering the following aspects.

Assess the measurement and recognition consistency of AASB138 Intangible Assets with the AASB Framework.

Use the measurement and recognition criteria of AASB138 Intangible Assets and AASB 136 Impairment of Assets to critically discuss the accounting policies of the company.

Use the disclosure requirements of AASB 138 and AASB 136 to recommend the changes required in the companys disclosure.