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Can someone direct me about solving the following problem? I dont get why do we allocate the RA only to inventory and TR for example while excluding fully goodwill?
An impairment review was carried out and the recoverable amount of the cash generating unit was determined at $100m. Carrying amounts prior to impairment:
The inventory and receivables are considered ti be included at their recoverable amounts.
What is the carrying amount of the intangibles once the impairment loss has been allocated?
The impairment goes to goodwill first and then the other assets on a pro-rata basis. The inventory and receivables are already at their recoverable amount so not required to be impaired.