CERTYNEX IFRS ACADEMY

The Ardentis group has acquired Nordhaven, which holds operating subsidiaries in Norway, Sweden and Denmark. For IAS 21, goodwill is assigned to each of these three foreign operations. Management monitors goodwill at the level of the Nordic hub, a group of CGUs that remains within the Northern Europe operating segment, where all the synergies are expected. The auditors question the level of the impairment test. Which analysis is correct?

The test must be performed by country, because the assignment required by IAS 21 sets the minimum level of the test.

The test is performed at the level of the Northern Europe segment, whatever the monitoring level, since it is the ceiling.

The test is performed at the level of the Nordic hub, the lowest level of internal monitoring within the segment limit, even though IAS 21 tracking is finer.

Ardentis must create subsidiary-level reporting to justify a test at the level of the Nordic hub.