SBR Technical Article Podcast: Impairment of goodwill
Goodwill & Impairment – Key Exam Points for ACCA SBR
• Understand the two methods of measuring goodwill under IFRS 3: proportionate goodwill and full goodwill
• Know how to calculate goodwill when NCI is measured at proportionate share vs fair value
• Apply IAS 36 principles to identify when an impairment review is required
• Distinguish between recoverable amount, fair value less costs of disposal, and value in use
• Understand that goodwill and certain intangibles require annual impairment testing regardless of indicators
• Learn how impairment losses are allocated between goodwill and other assets within a CGU
• Apply the “gross-up” approach when impairment testing proportionate goodwill
• Recognise how impairment impacts the parent and NCI under each goodwill method
• Work through numerical examples to calculate impairment losses and their allocation in both methods
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