IAS 36Chapter 9Lesson 1
Corporate assets
Step 1 of 9Learning objectives
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The head office, the central IT system or a research centre serve several CGUs without producing cash flows of their own: their recoverable amount cannot be estimated on its own. The lesson shows how to identify them, how to allocate their carrying amount to CGUs on a reasonable and consistent basis, and what to do when that allocation is impossible: test the CGU without the corporate asset, then the smallest group of CGUs to which a portion can be allocated.
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Learning objectives
- Identify an entity's corporate assets and explain why their recoverable amount cannot, in principle, be estimated on its own.
- Allocate the carrying amount of a corporate asset to CGUs on a reasonable and consistent basis, then test each CGU with its portion.
- Apply the two-stage test when allocation is impossible (CGU without the corporate asset, then smallest group of CGUs) and allocate the resulting loss.