CERTYNEX IFRS ACADEMY

Lorvane sells one of the shops of its regional network; the shop is an operation within the South network CGU, to which goodwill has been allocated. The finance director computes the gain or loss on disposal by comparing the selling price with the carrying amount of the shop's fittings and inventories only. What correction is needed?

None: goodwill can only be derecognised when the whole CGU is disposed of.

Add the portion of goodwill associated with the shop, measured in principle on relative values.

Recognise the shop's portion of goodwill as a separate impairment loss, outside the gain or loss on disposal.

Add a portion of goodwill computed in proportion to the carrying amount of the shop's inventories.