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Workpaper template

WorkpaperIAS 36 — Impairment of AssetsL2 · L3 · L4

Allocation of goodwill to units

2 missions9 sections to document30 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Allocate acquired goodwill to the units expected to benefit from the synergies, at the lowest level of internal monitoring and not above an operating segment, complete the initial allocation within the time limit, reconcile the allocation table with the goodwill recognised and calculate, on relative values, the share relating to an operation disposed of or reorganised.

9 sections · 18 blocks · 1 calculation · 0 entries

  • IAS 36 §80
  • IAS 36 §81
  • IAS 36 §82
  • IAS 36 §84
  • IAS 36 §85
  • IAS 36 §86
  • IAS 36 §87
  • IAS 36 §133
  • IAS 36 §134

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

2 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Subsidiary with non-controlling interests: notional goodwill, loss and disclosures
Case task documented here
  • To which unit is goodwill allocated and at which level is it tested?
1

Inputs

Inputs

  • Business combination and expected synergies (benefiting units)

    TextRequired

  • Acquisition date

    DateRequired

    20X2-01-01

  • Goodwill recognised (measured under IFRS 3, provided)

    NumberRequired

    480,000

  • Goodwill allocated to the unit (or group of units) tested

    NumberRequired

    480,000

  • Goodwill allocated to the other units

    NumberRequired

    0

  • Goodwill not yet allocated at the reporting date

    NumberRequired

    0

  • Goodwill of the unit before the disposal or reorganisation

    Number

  • Relative values (operation disposed of and portion retained, or new units)

    Table

  • Row whose share of goodwill is calculated

    Choice

    Operation disposed of / Portion retained / Unit A / Unit B / Unit C / Unit D / Unit E

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Level and timing of the allocation

Analysis

IAS 36 §80IAS 36 §81IAS 36 §82IAS 36 §84IAS 36 §85

  • Checks on the allocation of goodwill

    ChecklistRequired

    • Units or groups of units expected to benefit from the synergies
    • Lowest level of internal monitoring, without a new reporting system
    • Level not larger than an operating segment (IFRS 8) before aggregation
    • Initial allocation completed before the end of the first period beginning after the acquisition
4

Disposal and reorganisation

Analysis

IAS 36 §86IAS 36 §87

  • Treatment of goodwill on a disposal or reorganisation

    Checklist

    • Share included in the gain or loss on disposal
    • Relative values, unless a better method is demonstrated
5

Share of goodwill on relative values

Calculations

IAS 36 §86IAS 36 §87

  • Share of goodwill of the row selected (relative values)

    Calculation

    Goodwill of the unit before the disposal or reorganisation ; Relative values (operation disposed of and portion retained, or new units) ; Row whose share of goodwill is calculated

6

Allocation level retained

Judgment

IAS 36 §80IAS 36 §81

  • Conclusion on the allocation level of goodwill

    JudgmentRequired

    A single unit, lowest level of internal monitoring

    A single unit, lowest level of internal monitoring / Group of units (non-arbitrary allocation impossible at a lower level)

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

7

Conclusion

Conclusion

  • Goodwill allocation table and conclusion

    ConclusionRequired

8

Disclosures

Disclosure

IAS 36 §85IAS 36 §133IAS 36 §134

  • Disclosures on the allocation of goodwill

    ChecklistRequired

    • Goodwill unallocated at the reporting date: amount and reasons
    • Goodwill allocated to each significant unit
9

Normative references

References

  • Paragraphs cited in this workpaper (verification status shown from the register)

    References

10

Checks and financial statement impact

  • The recognised goodwill is fully accounted for (units and unallocated amount)Pass
  • The goodwill of the unit tested is documentedPass
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0