ASIC noted the decision by ASX-listed Cardno Limited(Cardno) to make an additional impairment charge of $120 million to the goodwill for its Americas business for the year ending 30 June 2015. This adjustment will be recorded in 2015 comparative figures in its 30 June 2016 financial report.

ASIC reviewed Cardno's 30 June 2015 financial report as part of its ongoing financial surveillance program. We were concerned that group overheads were not allocated to Cardno's Americas cash generating unit.

As outlined in ASIC media release 15-331 MR Focus for 31 December 2015 financial reports, impairment testing and asset values remain a focus area of our financial reporting surveillances. In calculating the value in use for each cash generating unit, cash outflows should include those necessary to generate continuing cash inflows and which are directly attributable, or can be allocated on a reasonable and consistent basis.