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IAS 36 – Example 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 36 – Example 1

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarP2-D2.
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    Posts
  • July 20, 2017 at 7:10 pm #397835
    Avatarbojanbih
    Member
    • Topics: 17
    • Replies: 16
    • ☆

    Sir, please tell me why we need to impair G/W 100%? what i telling us that G/W is impaired in the whole amount?

    Thank you.

    Regards,

    July 24, 2017 at 10:49 am #398374
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7235
    • ☆☆☆☆☆

    Hi,

    Once we have impaired the specific assets the rules are that goodwill is always impaired first before all other assets on a pro rata basis. As goodwill is just an accounting entry on the acquisition of the subsidiary then it only seems right that if the value of the CGU has fallen that goodwill suffer the hit first.

    Thanks

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