CERTYNEX IFRS ACADEMY

In 20X1, Ternac impaired the goodwill of its Nutrition cash-generating unit by 100,000. In 20X2, the unit's recoverable amount increases by 60,000 thanks to the success of a new product range. What is the effect of this increase on goodwill?

Goodwill is increased by 60,000 in profit or loss, since the loss of 100,000 recognised in 20X1 is not fully offset by the increase.

Goodwill is increased by 60,000 in other comprehensive income, with no effect on profit or loss.

Goodwill stays at its impaired amount; any reversal can only concern the unit's other assets.

Goodwill is increased by 40,000, the difference between the loss of 100,000 and the increase of 60,000.