j) Descried the accounting policies relating to Intangible Asset adopted by Worley Parksons Good will Goodwill on acquisition of controlled

d entities is included in intangible assets and goodwill on acquisition of associates is included in investments in associates. Goodwill is not amortized but will be tested at lease twice a year, for any impairment in the carrying amount, or more frequently if required. Impairment is determined by assessing the recoverable amount of the groups of cash generating units to which the goodwill relates. When the recoverable amount of the groups of cash generating units is less than the carrying amount, an impairment loss is recognized. Impairment losses recognized for goodwill are not subsequently reversed. Identifiable intangible assets. Intangible assets acquired separately or in a business combination are initially measured at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Internally generated intangible assets are not capitalized and expenditure is recognized in the profit and loss in the year in which the expenditure is incurred. Intangible assets with finite lives are amortized over the useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least each financial year end. The amortization expense on intangible assets with finite lives is recognized in the statement of financial performance on a straight line basis over the following periods:

Customers contracts and relationships Trade names Favorable property leases Computer software Other

315 years 5-10 years 5 years 3-10 years 3-10 years

Intangible assets with indefinite useful lives are tested for impairment annually, either individually or at the cash generating unit level. Such intangible assets are not amortized. The useful life of an intangible asset with an indefinite life is reviewed each reporting period. Research costs are expensed as incurred. k) Are any items of Property, Plant, and Equipment, and/or Intangible Assets of your company impaired? impairment losses. Worley Parsonss annual report did not show exactly what the amount of accumulated impairment losses is for PPE and Intangible Assets. Therefore, the company combines the depreciation, amortization and the impairment losses into an amount called Accumulated Depreciation and Impairment or Accumulated Amortization and Impairment. Items that was impaired: Property, Plant and Equipment. Land and buildings Leasehold improvements Plant and equipment Computer equipment Intangible Assets. Goodwill If so, identify which assets are impaired, and the amount of accumulated

 Customer contracts and relationships Trade names Computer software Favorable property leases Other

Accumulated Depreciation and Impairment

PPE Land and Building Leasehold Improvement Plant and equipment Computer eqipment Total 2012($m) 0.1 65.3 94.0 54.7 214.1

Accumulated Amortization and Impairment

Asset Goodwill Customer contracts and relationships Trade names Computer Software Favorable property leases Other Total 2012($m) 1.6 91.3 51.9 109.7 9.1 2.4 266

l)

What

is

the

carrying

amount

of

leased

assets

and

lease

liabilities, at reporting date, of your company? Lease assets Lease Comitment Lease liabilities Operating lease payments Lease incentive liability 2012($m) 30 2012($m) 172.2 5

m) Describe the information disclosed about leased assets and lease liabilities in the annual financial report of your company. According to the Wonley Parksons Annual Report (2012), leases are recognized into two groups: The Group as a lessee: Leases are classified at their inception as either finance or operating leases based on the economic substance of the arrangement so as to reflect the risks and benefits incidental to ownership. Property, plant and equipment leases, where the group has substantially all the risks and rewards of ownership, are classified as finance leases. Otherwise, operating leases are the classification of leases where the lessor retains a significant portion of ownerships risks and rewards. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as an expense in the statement of financial performance. The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and rewards of ownership of the leased item, are recognized as an expense on a straight line basis. Lease incentives are recognized in the statement of financial performance as an integral part of the total lease expense. The Group as a lessor: A receivable at an amount equal to the present value of the lease payments, including any guaranteed residual value, is recognized. Income on finance leases is recognized on a basis reflecting a constant periodic return based on the lessors net investment outstanding in respect of the finance lease.

 Operating lease rental revenue is recognized on a straight line basis.