Professional Documents
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Key Audit Matters HUL
Key Audit Matters HUL
M : 1
REVENUE RECOGNITION –
DISCOUNTS AND REBATES
K.A.M : 2
K.A.M : 3
K.A.M : 4
IMPAIRMENT ASSESSMENT
K.A.M : 1
REVENUE RECOGNITION – DISCOUNTS &
REBATES
How our audit addressed it. Challenging the reasonableness of the assumptions,
•Understanding the process followed by the particularly forecasted revenue growth rate and
Company in respect of the annual impairment margins based on our knowledge of the Company
analysis for F&R CGU. and market. Assessing historical accuracy by
•Evaluating the design and implementation comparing past forecasts to actual results achieved
and testing the operating effectiveness of key •Involving the valuation professionals with
internal controls related to the Company’s specialized skills and knowledge to assist in
process relating to review of the annual evaluating the impairment model used and
impairment analysis, including controls over assumptions (including discount rate and long-term
determination of discount rate, near and long- sales growth rate applied by the Company by
term revenue growth rate and projected comparing it to a range of rates that were
margins.
K.A.M : 4
IMPAIRMENT ASSESSMENT OF FOOD &
REFRESHMENT CASH GENERATING UNIT (F&R CGU)