The Australian Securities and Investments Commission (ASIC) has revealed it raised concerns over the value of Premier Investments' assets.
Premier Investments, helmed by industry billionare Solomon Lew, was first questioned over the value of its casual wear brands in its financial report for the year ended July 29, 2017.
ASIC revealed it questioned the "reasonableness and supportability" of royalty rate assumptions and sales growth forecasts used in testing the assets for impairment.
ASIC's intervention ensures Australian accounting standards, which state that businesses must test the value of goodwill and brand names every year.
Now it has noted Premier's decision to finally write down the value of casual brands by $30 million in its financial report for the year ended July 28, 2018.
The Group operates labels such as Just Jeans, Jay Jay and Dotti.
"Premier has referred to the increasingly competitive retail landscape and structural changes impacting the apparel industry in Australia and New Zealand," ASIC wrote in a statement.
The impairment of non-financial assets remains a focus area of ASIC’s financial reporting surveillance program.