IAS 36 Impairment testing: practical issues

IAS 36 Impairment testing : practical issues Introduction Contents IAS 36 Impairment of Assets (the standard) sets out the procedures that entities must apply to ensure that their assets are carried at no Introduction 2 more than the amounts expected to be recovered through the use or sale of the assets. Executive summary 3. Although the main principles of IAS 36 are very clear, the practical testing for Impairment at the end application of IAS 36 has always been challenging and problems have of each reporting period 4. been brought into focus during the recent economic uncertainty.

6 IAS 36 Impairment testing: practical issues Allocating and reallocating goodwill Acquired goodwill is allocated to each of the acquirer’s CGUs, operations disposed of. or to a group of CGUs, that are expected to benefit from the synergies of the combination. This is …

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