Link to IAS 36: goodwill and cash-generating units

Learning objectives

• Calculate the gross-up of goodwill when the non-controlling interest is measured at the proportionate share, before the impairment test.L3, L4
• Determine the allocation of goodwill to the cash-generating units expected to benefit from the synergies.L3, L4

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

2 questions

• Cristal SA acquired {parent_percent} of Sable SA and measured the non-controlling interest at its proportionate share of identifiable net assets; the goodwill recognised is {goodwill_recognised}. Sable is a cash-generating unit to which this goodwill is allocated. Case convention: the goodwill recognised belongs entirely to the {parent_percent} share. Calculate the carrying amount of goodwill grossed up to 100% before comparison with the recoverable amount.L3
• 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?L4