Cash-generating unit, goodwill and corporate assets

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  PLANT_AND_EQUIPMENT · 1,000,000 | CORPORATE_ASSET_SHARE · 360,000 | BUILDINGS · 500,000 · 480,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  300,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 300,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  600,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 1,000,000 · 10 | UNIT_B · 1,500,000 · 20 | UNIT_C · 2,000,000 · 5

• Unit tested in the allocation basis

  Choice

  Unit B

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  1,500,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Plant and equipment

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  360,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  300,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  2,160,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  660,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  300,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  360,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  250,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  300,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  660,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	660,000
  Goodwill		300,000
  Accumulated impairment of the other assets		360,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-660,000

Liabilities

0

Profit or loss

-660,000

OCI

0

Equity

-660,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  PLANT_AND_EQUIPMENT · 1,000,000 | CORPORATE_ASSET_SHARE · 360,000 | BUILDINGS · 500,000 · 480,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  300,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 300,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  600,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 1,000,000 · 10 | UNIT_B · 1,500,000 · 20 | UNIT_C · 2,000,000 · 5

• Unit tested in the allocation basis

  Choice

  Unit B

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  1,500,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Share of corporate assets

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  360,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  300,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  2,160,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  660,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  300,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  360,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  90,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  300,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  660,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	660,000
  Goodwill		300,000
  Accumulated impairment of the other assets		360,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-660,000

Liabilities

0

Profit or loss

-660,000

OCI

0

Equity

-660,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  PLANT_AND_EQUIPMENT · 1,000,000 | CORPORATE_ASSET_SHARE · 360,000 | BUILDINGS · 500,000 · 480,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  300,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 300,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  600,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 1,000,000 · 10 | UNIT_B · 1,500,000 · 20 | UNIT_C · 2,000,000 · 5

• Unit tested in the allocation basis

  Choice

  Unit B

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  1,500,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Buildings

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  360,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  300,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  2,160,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  660,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  300,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  360,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  20,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  300,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  660,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	660,000
  Goodwill		300,000
  Accumulated impairment of the other assets		360,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-660,000

Liabilities

0

Profit or loss

-660,000

OCI

0

Equity

-660,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X3-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  PLANT_AND_EQUIPMENT · 1,500,000 | INTANGIBLE_ASSETS · 1,000,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  480,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

  80 %

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 480,000 | NON_CONTROLLING_INTERESTS · 120,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

• Unit tested in the allocation basis

  Choice

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  2,700,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Plant and equipment

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  600,000

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  120,000

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  600,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  3,100,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  400,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  400,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  320,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  320,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	320,000
  Goodwill		320,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-320,000

Liabilities

0

Profit or loss

-320,000

OCI

0

Equity

-320,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  INTANGIBLE_ASSETS · 1,600,000 · 1,500,000 | PLANT_AND_EQUIPMENT · 7,200,000 | CORPORATE_ASSET_SHARE · 800,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  1,000,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 1,000,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  1,200,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 8,800,000 | UNIT_B · 1,650,000 | UNIT_C · 2,750,000

• Unit tested in the allocation basis

  Choice

  Unit A

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  8,640,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Plant and equipment

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  800,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  1,000,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  10,600,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  1,960,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  1,000,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  960,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  774,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  1,000,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  1,960,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	1,960,000
  Goodwill		1,000,000
  Accumulated impairment of the other assets		960,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-1,960,000

Liabilities

0

Profit or loss

-1,960,000

OCI

0

Equity

-1,960,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  INTANGIBLE_ASSETS · 1,600,000 · 1,500,000 | PLANT_AND_EQUIPMENT · 7,200,000 | CORPORATE_ASSET_SHARE · 800,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  1,000,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 1,000,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  1,200,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 8,800,000 | UNIT_B · 1,650,000 | UNIT_C · 2,750,000

• Unit tested in the allocation basis

  Choice

  Unit A

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  8,640,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Intangible assets

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  800,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  1,000,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  10,600,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  1,960,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  1,000,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  960,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  100,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  1,000,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  1,960,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	1,960,000
  Goodwill		1,000,000
  Accumulated impairment of the other assets		960,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-1,960,000

Liabilities

0

Profit or loss

-1,960,000

OCI

0

Equity

-1,960,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  INTANGIBLE_ASSETS · 1,600,000 · 1,500,000 | PLANT_AND_EQUIPMENT · 7,200,000 | CORPORATE_ASSET_SHARE · 800,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  1,000,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 1,000,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  1,200,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 8,800,000 | UNIT_B · 1,650,000 | UNIT_C · 2,750,000

• Unit tested in the allocation basis

  Choice

  Unit A

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  8,640,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Share of corporate assets

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  800,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  1,000,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  10,600,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  1,960,000

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  1,000,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  960,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  86,000

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  1,000,000

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  1,960,000

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Account	Debit	Credit
  Impairment loss	1,960,000
  Goodwill		1,000,000
  Accumulated impairment of the other assets		960,000

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedPass

Assets

-1,960,000

Liabilities

0

Profit or loss

-1,960,000

OCI

0

Equity

-1,960,000

• Unit tested (scope, monitoring by management, goodwill and corporate assets attached)

  TextRequired

• Date of the test (same date every year for a unit carrying goodwill)

  DateRequired

  20X5-12-31

• Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known)

  TableRequired

  OTHER_ASSETS · 2,750,000 | CORPORATE_ASSET_SHARE · 250,000

  The share of corporate assets appears on a CORPORATE_ASSET_SHARE row. The excess of an asset held at its floor is spread over the other assets pro rata, whatever the order of the rows.

• Recognised goodwill allocated to the unit

  Number

  400,000

• Ownership percentage (non-controlling interests measured at their share of net assets)

  Number

• Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share)

  Table

  PARENT · 400,000

  Without non-controlling interests, a single PARENT row equal to the allocated goodwill. With interests measured at their share of net assets, add the notional goodwill row: the loss relating to it is not recognised (Appendix C, para. C8).

• Holder whose goodwill loss is recognised

  Choice

  Parent (recognised goodwill)

  Parent (recognised goodwill) / Non-controlling interests (notional goodwill)

• Carrying amount of the corporate asset to allocate

  Number

  1,200,000

• Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key)

  Table

  UNIT_A · 8,800,000 | UNIT_B · 1,650,000 | UNIT_C · 2,750,000

• Unit tested in the allocation basis

  Choice

  Unit C

  Unit A / Unit B / Unit C / Unit D / Unit E

• Liability assumed by the buyer, deducted when needed to determine the recoverable amount

  Number

• Recoverable amount of the unit (Recoverable amount workpaper)

  NumberRequired

  3,700,000

• Asset of the unit whose share of the loss is detailed

  Choice

  Buildings / Plant and equipment / Intangible assets / Share of corporate assets / Other assets

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 36 §66IAS 36 §68IAS 36 §69IAS 36 §75IAS 36 §76IAS 36 §77IAS 36 §78IAS 36 §90IAS 36 §96IAS 36 §100IAS 36 §101IAS 36 §102

• Checks on the unit tested

  ChecklistRequired

  • Smallest group of assets generating largely independent cash inflows
  • Units consistent with how management monitors the operations
  • Carrying amount consistent with the cash flows used for the recoverable amount
  • Liability assumed deducted from both the carrying amount and value in use
  • Unit carrying goodwill tested every year and whenever there is an indication
  • Share of corporate assets included when it can be allocated on a reasonable basis

IAS 36 §90IAS 36 §102IAS 36 §104IAS 36 §105IAS 36 §C4IAS 36 §C8

• Share of the corporate asset allocated to the unit

  Calculation

  250,000

  Carrying amount of the corporate asset to allocate ; Allocation basis of the corporate asset chosen by the entity, by unit (for example carrying amount, possibly weighted; IAS 36 imposes no key) ; Unit tested in the allocation basis

• Notional total goodwill (recognised goodwill grossed up to include the non-controlling interests' share; gross-up method chosen by the case)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Notional goodwill of the non-controlling interests (not recognised)

  Calculation

  Recognised goodwill allocated to the unit ; Ownership percentage (non-controlling interests measured at their share of net assets)

• Goodwill included in the carrying amount tested

  CalculationRequired

  400,000

  Recognised goodwill allocated to the unit ; Notional goodwill of the non-controlling interests (not recognised)

• Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted)

  CalculationRequired

  3,400,000

  Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Goodwill included in the carrying amount tested ; − Liability assumed by the buyer, deducted when needed to determine the recoverable amount

• Loss of the unit (carrying amount less recoverable amount, nil if negative)

  CalculationRequired

  0

  Carrying amount of the unit (assets, corporate share, goodwill tested, liability deducted) ; − Recoverable amount of the unit (Recoverable amount workpaper)

• Loss allocated first to the goodwill tested

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss allocated to the other assets (pro rata, subject to floors)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Share of the loss of the asset detailed

  Calculation

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Remainder not allocated (all assets at their floor)

  CalculationRequired

  0

  Loss of the unit (carrying amount less recoverable amount, nil if negative) ; Goodwill included in the carrying amount tested ; Assets of the unit other than goodwill (carrying amount; floor = highest of fair value less costs of disposal, value in use and zero, if known) ; Asset of the unit whose share of the loss is detailed

• Loss recognised on goodwill (share of the recognised goodwill only)

  Calculation

  0

  Loss allocated first to the goodwill tested ; Goodwill of the unit by holder (PARENT: recognised; NON_CONTROLLING_INTERESTS: notional share) ; Holder whose goodwill loss is recognised

• Impairment loss recognised (goodwill and other assets)

  Calculation

  0

  Loss recognised on goodwill (share of the recognised goodwill only) ; Loss allocated to the other assets (pro rata, subject to floors)

• Impairment loss of the unit

  Entry

  Debit Impairment loss ← Impairment loss recognised (goodwill and other assets) ; Credit Goodwill ← Loss recognised on goodwill (share of the recognised goodwill only) ; Credit Accumulated impairment of the other assets ← Loss allocated to the other assets (pro rata, subject to floors)

IAS 36 §68IAS 36 §69IAS 36 §102

• Level of the test: unit retained

  JudgmentRequired

  Smallest group generating largely independent inflows

  Smallest group generating largely independent inflows / Unit too broad: to be split before the test

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Allocation basis of the corporate asset

  JudgmentRequired

  Share allocable on a reasonable and consistent basis

  Share allocable on a reasonable and consistent basis / Not allocable to the unit: test at the level of the smallest group of units

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 36 §130IAS 36 §134

• Disclosures on the impaired unit or the unit carrying goodwill

  ChecklistRequired

  • Description of the unit, loss by class of assets, change in aggregation
  • Recoverable amount, basis and discount rate
  • Goodwill of the unit, key assumptions and sensitivity

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The carrying amount of the unit is determinedPass
• The loss of the unit is determined (nil if none)Pass
• The loss is fully allocated (goodwill, other assets, remainder)Pass
• The unit impairment entry is balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0