CERTYNEX IFRS ACADEMY

Varenne Industrie recognises an impairment loss on a cash-generating unit (CGU) to which goodwill has been allocated. How should this loss be allocated among the assets of the unit?

Pro rata to the carrying amount of all the assets of the unit, goodwill included.

First to the allocated goodwill, then to the other assets pro rata to their carrying amounts.

First to the tangible assets pro rata to their carrying amounts, goodwill being reduced only as a last step.

To goodwill only, even when the loss exceeds its carrying amount.