Viva Energy revises impairment expenses by $25m post-ASIC intervention

Following an ASIC review, energy company Viva Energy has changed an accounting judgement made in its financial report for the 2025 calendar year (CY), causing its impairment expenses to increase by $25 million.

Viva Energy operates a network of small convenience stores offering fuel, food and everyday essentials. They serve both retail customers and wholesale fuel customers, the latter offering provided via Shell Card.

Following a review of Viva Energy’s 2024CY financial report, ASIC raised concerns about the company’s approach to impairment testing.

The company had assessed some of its sites as a group, known as the ‘Shell Card cash-generating unit (CGU),’ on the basis that Shell Card was a wholesale offering across Viva Energy’s Australian network.

However, under Accounting Standard AASB 136 Impairment of assets (AASB 136), entities are required to test assets for impairment at an individual asset level where possible. Impairment should only be assessed at the CGU level if the recoverable amount of an individual asset could not be determined, ASIC said.

“Because Viva Energy was able to assess impairment for each individual retail site included in the Shell Card CGU, ASIC took the view that the group approach was not appropriate,” the regulator said in a statement.

ASIC reminded financial report preparers to remember that careful judgment was required when assessing assets for impairment, to ensure compliance with accounting standards.

For the 2025 calendar year, Viva Energy said it had revised its approach towards impairment testing to be consistent across all retail sites, in accordance with ASIC’s view.

“Historically, sites with high Shell Card utilisation were included within a Shell Card CGU based on management’s judgment that they depended on each other for the generation of cashflows from the use of Shell Card,” the company disclosed.

“The Group has revised its judgment and now treats these sites consistently with all other retail sites as separate CGUs for impairment testing.”