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9: An entity A acquires 60% of the ownership interest in another entity B. The goodwill arising on acquisition was $24 million, and the carrying
9: An entity A acquires 60% of the ownership interest in another entity B. The goodwill arising on acquisition was $24 million, and the carrying value of entity B's net assets in the consolidated financial statements is $60 million at December 31, 20X9. The recoverable amount of the cash-generating unit B is $80 million at December 31, 20X9. Required: Calculate any impairment loss arising at December 31, 20X9, for the cash-generating unit B. QUESTION 10: An entity has recorded goodwill of $8 million from 100% acquisitions arising before IFRS 3 (Revised). It subsequently records goodwill of $4 million on a 60% acquisition and uses the fair value method to value NCI. An impairment test is carried out at the period end and goodwill is impaired by $3 million. Required: How is the impairment loss recorded in the entity's records? QUESTION 11: An entity has two cash-generating units, X and Y. There is no goodwill within the units' carrying values. The carrying values are X $10 million and Y $15 million. The entity has an office building that has not been included in the above values and can be allocated to the units on the basis of their carrying values. The office building has a carrying value of $5 million. The recoverable amounts are based on value-in-use of $9 million for X and $19 million for Y. Required: Determine whether the carrying values of X and Y are impaired
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