CERTYNEX IFRS ACADEMY

The Corvane group, whose reporting date is 31 December, acquired Delmont on 1 February 20X1. The integration programme is due to last until mid-20X3, and management wishes to wait until it ends, in 20X3, to allocate the goodwill to CGUs, as the final organisation has not been decided. What position should the auditor take?

The deferral is acceptable: allocation can wait until the end of the integration, which alone will show which CGUs benefit.

The deferral is acceptable until 1 February 20X3, i.e. two years after the acquisition.

The deferral is rejected: the initial allocation must be completed at the latest before 31 December 20X2.

The deferral is rejected, because the allocation had to be completed by 31 December 20X1, with no possibility of deferral.