CERTYNEX IFRS ACADEMY

The recoverable amount of a cash-generating unit that carries goodwill, and whose impairment loss had been allocated to goodwill and then to the other assets, increases on a lasting basis. The unit's assets are not revalued. How is the reversal treated?

It is allocated first to goodwill and then to the other assets, in the reverse order of the loss allocation.

It is allocated pro rata to all the assets of the unit, including goodwill.

It is allocated to the assets other than goodwill, pro rata to their carrying amounts, and recognised in profit or loss.

It is allocated in full to the largest asset of the unit, which bore the largest share of the loss.