CERTYNEX IFRS ACADEMY

For the purposes of IAS 21, the Hexaport group tracks the goodwill of each of its foreign subsidiaries, whereas it monitors goodwill for internal management at the level of its two regional divisions. What consequence does this finer tracking have for the level of the impairment test?

Goodwill must be tested subsidiary by subsidiary, since it is already tracked at that level for IAS 21.

No obligation: the allocation level for the test may differ from the one used for IAS 21.

The group must align its IAS 21 tracking with its regional divisions in order to use a single level.

Goodwill is tested subsidiary by subsidiary only in the year of acquisition, then at division level.