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ACCA P2 Impairments and group accounts
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When we calculate the Carrying value of the Subsidiary to test for impairment,
– should the goodwill added be the Net Goodwill( Gross goodwill less impairment to date).
It does not apply to this question as the acquisition took place in the year. What if the acquisition took place a few years ago?
The calculations well explained. Simple and clear. Thank you
>An asset/CGU is impaired if its carrying value falls below its recoverable amount.
That statement is inaccurate.
Impairment loss is rather the amount by which the carrying amount of an asset or cash-generating unit EXCEEDS its recoverable amount.
Totally agree. The statement should be: An asset/CGU is impaired if its carrying value IS HIGHER THAN its recoverable amount.