Cash Flows – Impairment of goodwillForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Cash Flows – Impairment of goodwillThis topic has 3 replies, 2 voices, and was last updated 4 years ago by Stephen Widberg.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts January 10, 2021 at 6:05 pm #605432 jacobrosenthalParticipantTopics: 2Replies: 1☆Please remind me (the last video on groups) why the adjustment re impairment of goodwill goes in operational cash flows as opposed to Investment cash flows January 11, 2021 at 4:26 pm #605539 Stephen WidbergKeymasterTopics: 16Replies: 3411☆☆☆☆☆Impairment (like depreciation) is not a cash flow – it has been deducted in calculating PBT.So, like depreciation, it must be added back in order to convert profits into cash flows. January 11, 2021 at 6:25 pm #605551 jacobrosenthalParticipantTopics: 2Replies: 1☆Seeing as it is an investment in a subsidiary , why is it not added back to investment cash flows? January 12, 2021 at 12:49 pm #605601 Stephen WidbergKeymasterTopics: 16Replies: 3411☆☆☆☆☆1. It is NOT a cash flow.2. It is a CORRECTION – because the profit used in operating cash flows includes non-cash items. Exactly the same logic as depreciation.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In