Please enable JavaScript.

Coggle requires JavaScript to display documents.

IAS 36: Impairments (Overview (if an asset is impaired (if this decrease…

- - - - intangible with an indefinite useful life
      - not yet available for use
      - asset is goodwill
- - - - EITHER measured at
        
        FV or
        
        proportionate share of net identifiable assets at acquisition
    - - consolidated FS already reflect the total goodwill
      - goodwill is NOT grossed up before being included as part of the CA of the subsidiary
    - - but is NOT recognised in the parent's consolidated FS
      - entity must gross up the CA of GW allocated to the unit to include the GW attributable to the NCI
      - goodwill attributable to NCI is included in the RA of the related CGU
      - this adjusted CA is then compared with the RA of the unit to determine whether the CGU is impaired
  - - - net identifiable assets of the subsidiary AND
      - goodwill attributable to both the parent as well as the non-controlling shareholders
  - - - on the same basis as that on which profit or loss is allocated
      - why?
        
        GW is seen to represent another asset in the subsidiary
        
        which gives rise to economic benefits
        
        that will eventually be shared in the profit sharing ratio when distributed (when dividends are declared)
      - impairment loss is allocated between the parent and the NCI
    - - GWIL are allocated to the parts of the CGU that have a NCI
    - - that impairment is NOT recognised as a GW impairment loss
      - only the impairment loss relating to the GW is allocated to the parent is recognised as a GWIL
      - when NCI are measured at their proportionate share of net identifiable assets
- - - - allocated to the assets of the unit
      - EXCEPT for goodwill
      - pro rata with the CA's of those assets
    - - shall NOT be increased above the LOWER of its RA and CA
      - that would have been determined had no impairment loss been recognised in prior periods
    - - why?
        
        increase in the RA of GW in the periods following an imp loss is likely to be an increase in internally generated goodwill
        
        rather than reversal of a previous imp loss
        
        IAS 38 prohibits the recognition of internally generated goodwill as an intangible asset
      - imp loss recognised for GW shall NOT be reversed in a subsequent period
- - - - IAS 16
    - - IAS 36
    - - IAS 16