CERTYNEX IFRS ACADEMY

Optimedia monitors goodwill at the level of its three divisions, each within a separate operating segment. Its internal auditor argues that IAS 36 requires it to design goodwill reporting CGU by CGU. What should be concluded?

He is right: goodwill must always be tested at the level of each CGU, which requires dedicated reporting.

He is right, but only for the first year following the acquisition.

He is right if the divisions each comprise more than ten CGUs.

He is wrong: testing goodwill at the level of internal monitoring does not require new reporting systems to be created.