Calvène holds 80 % of its subsidiary Rozel, which is a CGU. Non-controlling interests were measured at their proportionate share of identifiable net assets. At the year-end, the goodwill recognised amounts to 400,000 and the carrying amount of Rozel's identifiable net assets to 1,600,000. The recoverable amount of the CGU is 1,700,000. For the notional gross-up, the group extrapolates goodwill in proportion to the ownership percentage (given). Compute the grossed-up carrying amount of the CGU and the impairment loss recognised.
- Parent's ownership percentage
- 80 %
- Goodwill recognised (parent's share)
- 400,000
- Carrying amount of identifiable net assets
- 1,600,000
- Recoverable amount of the CGU
- 1,700,000