Advanced Accounting (Canada) · Consolidation After Acquisition: Acquisition Differential & Impairment

When testing an asset for impairment, finding just one of FVLCD or value in use can sometimes end the test early. When does that shortcut work, and when does it fail?

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More in Consolidation After Acquisition: Acquisition Differential & Impairment

A CGU has a carrying amount of 500, fair value less costs of disposal of 460, and value in use of 520. Is it impaired under IAS 36, and by how much?

An indefinite-life intangible (or one not yet available for use) shows no impairment indicators all year. What testing is still required, and what does the indicator-based shortcut get wrong?

On consolidation after acquisition, how is the acquisition-differential portion assigned to land or goodwill treated differently from the portion assigned to a building?

A CGU's goodwill was written down for impairment; in a later year its recoverable amount recovers. Can any of the prior goodwill impairment be reversed?

For PP&E and definite-life intangibles under IAS 36, what triggers actually computing a recoverable amount — and how does that trigger differ from indefinite-life intangibles?

Recoverable amount is the higher of FVLCD and value in use. What distinguishes the two inputs, and which one captures an asset worth more to this entity than the market would pay?

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