CERTYNEX IFRS ACADEMY

Why does IAS 36 require a CGU to include all the assets that generate, or are used to generate, the cash flows used for its recoverable amount?

So that the carrying amount of the CGU is always equal to the total carrying amount of the entity's assets.

So that goodwill and all corporate assets can be systematically included, whatever their link with the unit.

To prevent a CGU from appearing fully recoverable when an impairment loss has occurred.

To ensure that each CGU is of the same order of magnitude as the entity's other CGUs, to facilitate internal comparisons.