For Carsales.com.au, the auditor firm PwC has mentioned three subheadings under KAM. These subheadings are:
i) Carrying of goodwill
PwC states that the company estimates a goodwill balance of $169.7 million which is one third of the total asset value. This goodwill was based on online advertising; data research; Finance and Related services and Chile. PwC found that the group did an impairment assessment over this goodwill balance but, the company did not identify the need for impairment. So, PwC has considered carrying value of goodwill to be communicated as the balance was found to be material and there was significant judgement done by the group.
ii) Carrying value of Weebmotors S.A. equity accounted investment:
PwC found the carrying value of the Webmotors S.A. equity accounted investment was key audit matters because significant investment of $63.7 million was done but the decline of the economy in Brazil resulted in underperformance against budget in fiscal year 2017
iii) Accounting for iCar Asia Limited investment:
During the first half of the financial year 2017, the company’s stake for Icar was decreased to 15.6% due to iCar raising more capital. As a result, the companies directors stepped down from board of iCar and the carsales concluded that they don’t have influence of iCar ceased the equity account for this investment. PwC has stated that the carsales is required to account for the iCar investment as available for sale financial asset in accordance to Australian Accounting Standards