I had a question regarding the impairment of goodwill. Every year you need to the impairment review. What if you come to the conclusion the value is actually more again after a couple of years of impairment. For example the technology that you acquired has a breakthrough.
Can you recover the impairment and increase the goodwill again?
Ask the Tutor ACCA FR
Goodwill recovery
9y ago#1No (this is covered within the video lectures) you can't reinstate the goodwill that you have previously impaired (EXCEPTIONALLY rare circumstances will allow it, but unlikely in an F7 exam)
The reason is that any improvement in goodwill, whether or not it has previously been impaired, is internally generated and the underlying principle is that we do not recognise internally generated intangible assets (again, a few exceptions)
OK?
Ok it makes sense! Must have missed this in the lecture.
Thanks a lot for the quick reply. It is perfectly clear now.
9y ago#3You're welcome
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