1           Executive Summary of Tabcorp Holdings Limited company in Australian

Tabcorp Holdings Limited is a listed company at Australian stock exchange. The company uses professional judgement as a skill to evaluate and review its financial statements and related accounts in the annual report. The work has cover analysis of annual report presented by Tabcorp Holdings Limited to evaluate and review various strategies used by the company to represent required information about assets allocation, cost details, and impairment. The report is based on the complete details about the professional judgments in the business. There is also discussion about the professional judgment implications in the business unit. The objective of financial reporting and professional judgment is to generate reliable information for users. Financial reporting represents the company's financial details to the investors and stock markets. report is concluded with the recommendations about the financial reporting of Tabcorp.

2           Introduction of Tabcorp Holdings Limited company in Australian
2.1         Professional Judgement of Tabcorp Holdings Limited company in Australian

In accounting, the term professional judgement is in use to define the application of accumulated knowledge and all related business experienced that a person earned from the relevant training in auditing and accounting field. It also concerns with the ethical standards and its possible impact on the decision-making process of an organization. Organizations require professional judgment for their accounts related activities to ensure the accuracy anddevelopment of right decisions about cost flow assumptions in inventory valuation(IVAN, 2016).

2.2         Importance of Professional Judgement of Tabcorp Holdings Limited company in Australian

Professional judgement is highly important for the organizations to measure the actual financial performance outcomes and represent the business image to the stakeholders. Accountants use this professional judgement knowledge and experience to review their financial statements (e.g. Statement of financial position and income statement) prepared at the end of the fiscal year. Professional judgment enables a company to understand and measure its assets impairment and disclose it in the financial statements. A right professional judgement represents what a company does wrong and right in the light of international accounting standards such as IFRS and IAS.

2.3         Implications on the Users of Tabcorp Holdings Limited company in Australian

In case, professional judgement is not made appropriately or in a most reasonable manner then the organization will have two implications on the users of accounting information. These implications are stated below:

1)      Decision makers make decisions based on the financial statements of the company. In case of inappropriate professional judgement, they will not be capable to make the right decisions about resources utilization and allocation.

2)      The investors use this information to appraise the financial position of a company before investing in its equity. Thus, improper professional judgment can develop a negative image of the company in the minds of investors.

3           Explanation of Tabcorp Holdings Limited company in Australian

The explanation section is about details on impairment and its discloser in the organizations such as Tabcorp Holdings Limited which is listed in ASX 300.

3.1         Impairment of Tabcorp Holdings Limited company in Australian

During the year 2019, Tabcorp Holdings Limited had made impairments in its assets before disclosing it in the financial statement of the company. Following the annual report of 2019, important information about the impairment of assets is stated in the report.The company made impairment of 2.9 million on 30 June 2019 which is further subdivided proportionally in the tangible assets such as property, plant, equipment and building. See the following table for further details about the impairment of Tabcorp Holdings Limited. 

Table 1Impairment of Tabcorp Holdings Limited in 2019

3.2         Estimates of Impairment of Tabcorp Holdings Limited company in Australian

In Tabcorp Holdings Limited, impairment was only made for the tangible assets as intangible assets of software or trademark were not requiring impairment for the year 2019. However, the company used the cost model for the impairment of tangible assets [e.g. plant, property, building, and equipment]. According to the annual report of Tabcorp Holdings Limited, goodwill of the company was not amortized therefore its cost was stated directly in the income statement as a negative value. However, it was also recognized for cost less accumulated impairment losses. While other intangible assets such as software and trademark are also recognized similarly as cost less accumulated impairment losses.

3.3         Relevant Disclosure of Tabcorp Holdings Limited company in Australian

In the notes section and annual report, the company has stated these impairment values are calculated. While the company has also disclosed any assumptions taken by the company while calculating its impairment for tangible and intangible assets. For instance, the company has stated that possible changes in the CGU and its carrying value are taken into consideration while recognizing impairment charges. Furthermore, the company mentioned that company made changes in all intangible assets that presented a significant change over the selected time duration.

4           Assessment of Professional Judgment
4.1         Appropriateness of Tabcorp Holdings Limited company in Australian

The appropriateness of professional judgement is really important for companies to avoid legal consequences, wrong decisions, and a bad reputation in the market.Based on the findings in part "b" it can be said that Tabcorp Holdings Limited is appropriately using international accounting standards for the impairment of their assets and professional judgement of their financial reports. Analysis show allocation of corporate assets and costs to CGU is appropriate and authentic. Company has clearly presented what considerations are taken for CGU and allocation process. While cash inflows are also aligned with the long-term average industry growth rate(Tabcorp.com.au, 2019).

5           Recommendation of Tabcorp Holdings Limited company in Australian
5.1         The objective of Financial Reporting and Professional Judgment

The objective of financial reporting and professional judgement is to generate reliable information for users. Financial reporting represents the company's financial details to the investors and stock markets. However, professional judgement aims to facilitate both the internal stakeholders of the company and external stakeholders of the company.

5.2         Recommendations of Tabcorp Holdings Limited company in Australian

Based on the above-stated information and analysis of financial report it can be said that Tabcorp Holdings Limited is trying to fulfil all the requirements of international standards. However, there are some recommendations for further improvement and betterment. 

1)      Tabcorp Holdings Limited should represent details about the intangible asset for which impairment is zero thus users would be able to better understand the actual reasons. Moreover, it would make this report more reliable.

2)      Tabcorp Holdings Limited should represent some indicators and related graphs as well.

6           Conclusion of Tabcorp Holdings Limited company in Australian

The whole discussion concludes that Tabcorp Holdings Limited has generated its annual report with all required information by its stakeholders. In this business research report, the introduction section covers three main points: professional judgment, the importance of professional judgement, and implications for the users. While the explanation and assessment section represent that financial details about impairment of assets are stated clearly with related disclosure of important information.

7           References of Tabcorp Holdings Limited company in Australian

IVAN, I. (2016). The importance of professional judgement applied in the context of the international financial reporting standards. Audit Financiar, 14(10), 1127-1135.

Tabcorp.com.au. (2019). Tabcorp Annual Report 2019. Retrieved from www.tabcorp.com.au: https://www.tabcorp.com.au/TabCorp/media/TabCorp/Investors/Annual%20Report/Tabcorp-AR-2019-Final.pdf