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Hi mike
At the bottom of page 78 you have described the impairment losses treatment. I didnt understand fully so I read this article
https://www.accaglobal.com/ie/en/discover/cpd-articles/corporate-reporting/ias36-impairment.html
At the bottom it seems to describe your steps 2 and 3 ie impair goodwill in the cgu and excess allocated against other cgu assets. What is the individually impaired assets that you speak of in step 1? Is step 1 for assets where we can calculate the recoverable amount and steps 2 and 3 for other assets in the cgu where this cant be calculated individually.
Does the value of the individual assets in step 1 include any goodwill?
Cheers
Hugh
No, the individual assets are where we have she assets that are damaged. For example, we have 10 fork lift trucks, on elf which is damaged. So write down / impair that individual asset that we can see is damaged. And then consider impairment of the remaining assets within the cgu and impair as necessary
Ok?
Thanks. When you say consider, why not impair them individually? Is this because we cannot see they are damaged, or specifically not damaged but could be impaired for any other reason ?
We would impair any individual asset where that asset is damaged. The overall concept of impairing is really aimed at impairing cgus where individual assets are not in themselves cash generators so cannot be assessed individually
Ok?
Got it cheers mike , I was trying to say that in my first post but I guess I didnt get the terminology right, I will put your answer into my notes.
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