Reversing an Impairment (Never for Goodwill) & the Journal Entries
This lesson is part of the course
In this lesson
Two years after the 2027 impairment the Labels CGU recovers. You roll the plant forward, cap the reversal at the depreciated original carrying amount and book the entries.
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Lessons in this course
- Impairment Indicators: When Must You Test? (IAS 36.9–14) Locked
- Recoverable Amount: the Higher of FVLCD and Value in Use Locked
- Value in Use: Five-Year Cash Flows, Terminal Value & a Pre-Tax Rate Locked
- CGUs & Goodwill: Allocation and the Carrying Amount to Test Locked
- Allocating an Impairment Loss: Goodwill First, Then Pro Rata with a Floor Locked
- Corporate Assets: Allocating the Head Office to the CGUs Locked
- Sensitivity & Headroom: Break-Even Discount Rate and Growth Locked
- Reversing an Impairment (Never for Goodwill) & the Journal Entries Locked