Impairment Testing: IAS 36 Value in Use, CGUs & Goodwill
Indicators, recoverable amount, a five-year value-in-use model, goodwill in CGUs, loss allocation with floors, corporate assets, sensitivity and reversals – with notes on ASC 350/360: 8 labs on one group.
The first lesson is free — no account needed.
About this course
An impairment testing course that applies IAS 36 to one fictional packaging group in a spreadsheet, with notes on where ASC 350 and 360 differ, for accounting students, auditors and reporting teams. You classify events as external or internal impairment indicators and run the market-capitalisation check, compare fair value less costs of disposal with value in use to get the recoverable amount, build a five-year value-in-use model with a terminal value and a pre-tax discount rate, allocate goodwill to three cash-generating units and test their carrying amounts, charge an impairment loss to goodwill first and spread the rest pro rata with a floor, allocate head-office assets, measure headroom against discount rates and growth and reverse an impairment with the journal entries. Illustrative figures, an educational summary of the standard, not accounting advice. The first lab is free.
Lessons
- Impairment Indicators: When Must You Test? (IAS 36.9–14)Free
- Recoverable Amount: the Higher of FVLCD and Value in Use Pro
- Value in Use: Five-Year Cash Flows, Terminal Value & a Pre-Tax Rate Pro
- CGUs & Goodwill: Allocation and the Carrying Amount to Test Pro
- Allocating an Impairment Loss: Goodwill First, Then Pro Rata with a Floor Pro
- Corporate Assets: Allocating the Head Office to the CGUs Pro
- Sensitivity & Headroom: Break-Even Discount Rate and Growth Pro
- Reversing an Impairment (Never for Goodwill) & the Journal Entries Pro