REVIEW QUESTION A cash generating unit (CGU) comprising a factory, plant and equipment etc and associated purchased goodwill becomes impaired because the product it makes is overtaken by a technologically more advanced model produced by a competitor. The recoverable amount of the cash generating unit falls to Tshs.60m, resulting in an impairment loss of Tshs.80m, allocated as follows: CA before impairment CA after impairment Tshs. (m) Tshs. (m) Goodwill 40 0 Patent (with no market value) 20 0 Tangible long-term assets. 80 60 140 60 Total After three years, the entity makes a technological breakthrough of its own, and the recoverable amount of the cash generating unit increases to Tshs.90m. The carrying amount of the tangible long-term assets had the impairment not occurred would have been Tshs.70m. Required: a)State the allocation rule applied in the allocation of an impairment loss arises in a CGU with goodwill as per IAS 36. b)Calculate the amount of the original impairment loss of Tshs. 80m that can be reversed.