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17-303MR Wonhe writes down assets
ASIC notes the decision by Wonhe Multimedia Commerce Limited to write down the value of its loans advanced assets at 31 December 2016 by $5.4 million.
ASIC had previously made inquiries with the company’s auditor in relation to the valuation of the loans advanced assets in the company's financial report at 31 December 2016. The company has noted that its first year of cash flow was not discounted as required, which also impacted on the discounting of subsequent financial years.
As outlined in ASIC media release 17-162MR ASIC calls on preparers to focus on the quality of financial report information, impairment testing and asset values remains a focus area of our financial reporting surveillances.