Question
In accordance with IAS 36 Impairment of Assets, how should an impairment loss for a cash generating unit (CGU) that includes goodwill be allocated? The
In accordance with IAS 36 Impairment of Assets, how should an impairment loss for a cash generating unit (CGU) that includes goodwill be allocated?
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| The loss is allocated to both the identifiable assets and goodwill on a pro rata basis using the carrying amount of each asset | |
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| B) | The loss is allocated to each of the identifiable assets in the CGU on a pro rata basis using the carrying amount of each identifiable asset |
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| C) | The loss is allocated first to reduce goodwill to zero; any excess is then allocated to the other identifiable assets on a pro rata basis using the carrying amount of each identifiable asset |
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| D) | The loss is allocated evenly over both the identifiable assets and goodwill of the CGU |
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
4th edition
78025524, 978-0078025525
