Which of the five disclosures is most informative? Which is least informative? Why? DisclosuresUnder IFRS, if a firm uses discounted cash flow analysis to value a cash-generating unit,the firm must disclose the discount rate. If the cash-generating unit includes goodwill orother indefinite-lived intangible assets (such as trademarks), then the firm must also dis-close other assumptions made to value that cash-generating unit (such as projected rev-enue growth rates and projected profit margins). Firms are encouraged but not requiredto disclose those assumptions even if a cash-generating unit does not include goodwillor identifiable intangible assets with indefinite lives.Impairment in the Recession of 2008-2009As the recession of 2008–2009 worsened, firms throughout the world recordedimpairment charges or explained why impairment charges were not. The follow-ing firms included impairment disclosures in 2008 or 2009 shareholders reports thatwere interesting because of the size of the impairment, the lack of impairment, or thedisclosure itself:Nestlé (Exhibit 1–-IFRS)Nestlé is one of the world's largest consumer products companies. During the pastseveral years, Nestlé acquired Powwow, a large European water distributor; Ralston-Purina, a large U.S.-based pet food and animal feed producer; Gerber, a U.S.-basedbaby food manufacturer, and Dryer's, a U.S.-based ice cream producer. Exhibit 1 in-cludes Nestlé's impairment test disclosures for those major acquisitions.The Swatch Group (Exhibit 2–IFRS)The Swatch group is one of the world's largest watch manufacturers. Exhibit 2 showsits 2008 impairment test disclosures.Royal Bank of Scotland (Exhibit 3–IFRS)The Royal Bank of Scotland (RBS) is one of the world's largest banks. In recentyears, RBS recorded significant goodwill when it acquired NatWest, Charter One,ABN Amro and Churchill. Because of the worldwide banking crises, RBS recordedsubstantial goodwill impairment charges, as disclosed in Exhibit 3.News Corp. (Exhibit 4–U.S. GAAP)News Corp., headed by Rupert Murdoch, acquired The Wall Street Journal in 2007.Internet advertising drove many newspapers into bankruptcy and others into nearbankruptcy. Many analysts and investors thought The Wall Street Journal's uniquemarket niche and relatively wealthy readers would isolate the journal from Inter-net competition. However, in 2008 the News Corp. recorded significant impairmentcharges, primarily for the WSJ acquisition. Those impairment charges are disclosedin Exhibit 4.CBS Corporation (Exhibit 5–U.S. GAAP)The worldwide recession and the Internet hurt most media companies, includingCBS Corporation. Exhibit 5 provides CBS's 2008 impairment disclosure.

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Full disclosure:
Full disclosure is an accounting principle which states that all the necessary…