CERTYNEX IFRS ACADEMY

At 30 June 20X5, Tavira SA recognised an impairment loss on the goodwill of the North cash-generating unit. At 30 September 20X5, the recoverable amount of that unit exceeds its carrying amount (case data). A preparer considers that, since measurement is year-to-date, the 30 June loss may be cancelled in the third quarter. What treatment is appropriate?

The loss is reversed in full in the third quarter, since year-to-date measurement at 30 September must reflect the unit's position at that date as at an annual closing, without waiting for the annual closing.

The loss is reversed up to the original carrying amount of the goodwill, the reversal being recognised in other comprehensive income of the period.

The goodwill impairment loss recognised in an interim period is not reversed: goodwill stays at its carrying amount after the loss, despite the rise in recoverable amount.

The loss is reversed to the extent of the improvement in recoverable amount, provided that the entity publishes a separate interim report for the third quarter.