CERTYNEX IFRS ACADEMY

In its 20X2 financial statements, Kalyste increased the goodwill of its subsidiary Nordwind, impaired in 20X0, by 30,000 and recognised that amount in other comprehensive income, explaining that the subsidiary has developed a strong reputation internally. Where is the error?

In the principle itself: a goodwill loss is never reversed, whatever the place of recognition.

Only in the place of recognition: the reversal should have been recognised in profit or loss.

In the amount: the reversal should have been limited to half of the original loss.

There is no error: an internally developed reputation justifies reversing goodwill.