IAS 36Chapter 7Lesson 2
The carrying amount of a CGU
Step 1 of 8Learning objectives
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To test a CGU, its recoverable amount must be compared with a carrying amount built **on the same basis**. The lesson shows which assets to include (those directly attributable or allocated on a reasonable basis that generate the cash flows used), why liabilities are excluded in principle, and how to deal with a liability a buyer would assume or with items included for practical reasons.
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Learning objectives
- Explain why the carrying amount of a CGU must be determined consistently with its recoverable amount.
- Determine the assets to include in, and the liabilities to exclude from, the carrying amount of a CGU.
- Calculate the carrying amount and recoverable amount of a CGU when a buyer would have to assume a recognised liability.
- Adjust the carrying amount symmetrically when assets or liabilities outside the CGU are taken into account for practical reasons.