CERTYNEX IFRS ACADEMY

Zodiac SA acquires Tessin SA and recognises goodwill of 600,000. The expected synergies will benefit Zodiac's cash-generating units North and South, which are monitored separately for internal management purposes, and not Tessin itself. How does it allocate the goodwill?

To the unit that groups Tessin's acquired assets, because it is the one that generated the goodwill.

To the acquirer's units North and South expected to benefit from the synergies, each unit remaining at the level at which goodwill is monitored for internal management purposes, not larger than an operating segment.

To Zodiac's broadest operating segment, whatever the way goodwill is monitored internally.

To units North and South, but at a level that management sets freely, even beyond an operating segment.