IAS 36Chapter 11Lesson 2
Reversal for a CGU: allocation, caps and goodwill excluded
Step 1 of 8Learning objectives
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When the recoverable amount of an impaired cash-generating unit goes back up, the reversal is allocated pro rata to the unit's assets other than goodwill, each within its own cap. Goodwill never goes back up: its impairment loss is permanent.
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Learning objectives
- Allocate the reversal for a CGU to its assets other than goodwill, pro rata to their carrying amounts.
- Apply to each asset the cap of the lower of its recoverable amount (if determinable) and its amount without impairment, and reallocate the excess.
- Explain why an impairment loss on goodwill is never reversed.
- Record the reversal for a CGU and draw the consequences for future depreciation.