Buddy Technologies Limited (Buddy) has written down the intangible assets of its consumer lighting business by $44.8 million in its financial report for the half-year ended 31 December 2021. ASIC reviewed Buddy’s financial report for the year ended 30 June 2021.
As part of its financial reporting surveillance program, ASIC raised questions about Buddy’s consumer lighting business, in particular:
using optimistic forecasts of revenue growth to value goodwill (70% for 2022), despite reporting negative revenue growth in 2021, and
the disclosure of Buddy’s operating segments, where no goodwill had been allocated to the Consumer Business segment.
Buddy’s write down is a result of adopting significantly reduced forecast revenue growth rates.
