238 ADVANCED FINANCIAL ACCOUNTING P4.13 Goodwill impairment P Co purchased an 80% interest in S Co, which has two divisions: Paints and Chemicals. Each of these two divisions has cash flows that are independent of each other. Hence, they are deemed as cash-generating units in accordance with IAS 36 Impairment of Assets. The goodwill paid by P Co for S Co was allocated to the two divisions as shown below. The following table shows the balances as at 31 December 20x5. Paints division Chemicals division Goodwill (P's share)...... Goodwill (non-controlling interests' share). Book value of identifiable net assets.. Unamortized balance of fair value adjustments. Fair value of division........ Value in use. $ 6,000,000 1,500,000 30,000,000 3,000,000 33,000,000 37,000,000 $ 7,000,000 1,750,000 43,000,000 5,000,000 56,000,000 50,000,000 Required: What is the impairment loss on goodwill , if any, that should be recognized by P Co in its consolidated financial statements for the year ended 31 December 20x5? 2. The allocation of goodwill to different cash-generating units may be an arbitrary process. Suggest how the allocation may be carried out meaningfully by P Co