How con impairment exenses be added back? In this question

Financial Reporting

Sir, In this question, they have not given any expenditure more than 540lacs(other expenses) in that case it is assumed in the solution that the amount is already deducted while arriving at the profit and it is being added back. I dont get it. Because it will not be part of COGS. Please explain the logic behind adding back impairment of goodwill and intangibles. [Video Time Stamp: 13:35] Video Details ------------- Ind AS - CA Final Ind AS 7 Cash Flow Statements #19. Illustration 11 - Consolidated CF Statement (Subs + Assoc)

Venkatesh Rathinam

CA Final

★ 15K+

12-Nov-25 20:29

165

Answers (1)

Impairment expense is a non-cash expense like depreciation. hence it is added back. We would have shown impairment expenses in P&L under other expenses.

CA Suraj Lakhotia

Admin

14-Nov-25 16:42