CERTYNEX IFRS ACADEMY

Pyla reorganises its reporting structure, which changes the composition of two CGUs to which goodwill has been allocated. Which statement correctly describes what happens to that goodwill?

It is reallocated on relative values, as for a disposal, unless a more relevant method exists.

It stays allocated to the original units until the next business combination, the internal reorganisation having no effect.

It is reallocated in proportion to the carrying amounts of the assets transferred, the only objective basis available.

It must be fully impaired in the units changed before any reallocation.