RSM221H1 Chapter Notes -Current Liability, Write-Off, John Wiley & Sons

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The fair value of lubello division of ,850,000 exceeds the carrying amount of the division including goodwill of. The carrying value of the division of ,628,500 exceeds the fair value of ,500,000, therefore goodwill is considered impaired by ,500. The loss would be reported separately in the income statement before taxes and discontinued operations. (e) under ifrs, the goodwill is allocated to cash generating units (cgu). An assessment for impairment is required annually and whenever circumstances indicate the cgu may be impaired. An impairment loss is determined as the excess of the cgu"s carrying amount over its recoverable amount (higher of viu and fv-sc). Any impairment is first allocated to goodwill and then to other assets in the cgu on a proportional basis. ,000: the recoverable amount of the cgu is compared with the carrying value to determine if there is any impairment. Based on the information provided, the recoverable amount is the higher of:

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