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Impairment Loss - Illustration 21 SM
Financial Reporting
Sir, will we have to test for impairment of individual CGU first, If the goodwill can be allocated on a reasonable basis.?
Answers (10)
Thread Starter
R MAlso while presentating answers do we have to write the answer in sentences like provided in the SM
You can write answers in your own words. It depends on the requirement of the questions.
Thread Starter
R MOne more dbt, if govt compensate for impairment loss , then how should we treat for it?
If Govt compensates for the loss - it would be treated as a government grant.
CA Suraj Lakhotia Admin
Yes. If Goodwill can be allocated to a CGU - first test CGU + Goodwill.
But in ICAI solution, they tested individual CGU for impairment first. Why ?
CA Suraj Lakhotia Admin
If Govt compensates for the loss - it would be treated as a government grant.
Treat Grant as Income. Or will we reverse the impairment loss.?
Thread Starter
R MBut in ICAI solution, they tested individual CGU for impairment first. Why ?
First we need to test at subsidiary level before including in consoldiated financial statements. You will understand once you complete Ind AS 103/110
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