CERTYNEX IFRS ACADEMY

Why does IAS 36 describe as arbitrary the allocation of a CGU's loss among its assets other than goodwill, when the recoverable amount of each of them cannot be estimated?

Because these assets work together and have no recoverable amount of their own.

Because the entity freely chooses which assets will bear the loss, according to its management priorities.

Because the loss is first allocated to goodwill, whatever its amount.

Because all the assets of the unit are remeasured at fair value before the allocation.