CERTYNEX IFRS ACADEMY

The goodwill of Iridane's Sensors unit was fully impaired in 20X1. In 20X3, thanks to innovations designed by its own teams, the unit's value is well above its carrying amount. Management proposes to reinstate goodwill up to the 20X1 loss. What answer should be given?

Accept, because the 20X1 loss is now contradicted by the facts.

Accept, provided an independent valuer confirms the increase in the unit's value.

Accept partially, up to the increase in value attributable solely to the innovations developed by the teams.

Refuse: the goodwill loss is never reversed, and this increase is internally generated goodwill.